c Experian plc Strategic report

Experian Annual Report 2021 Transforming

lives with data

Experian Annual Report 2021 Year ended 31 March 2021 Transforming with lives data

Contents Our purpose Strategic report To create a better tomorrow for consumers, for 02 Experian at a glance 04 Chairman’s statement businesses, for our people and for our communities. 06 Chief Executive’s review 10 Our purpose in action – COVID-19 response 14 Our investment case What we do 16 Key performance indicators 18 Market trends We create opportunities by turning data into 20 Our business model information, and by deploying advanced technologies 26 Our strategic focus areas 38 Our sustainable business strategy: and analytics. Environmental, Social and Governance 57 Non-financial information and s172(1) statement Why this matters 58 North America regional review 59 Latin America regional review As the world’s leading information services company 60 UK and Ireland regional review we play a pivotal role in the societies in which we work. 61 EMEA/Asia Pacific regional review 62 Financial review We believe it is our responsibility to use our capabilities 72 Risk management 81 Viability and going concern and data as a force for good. Governance 84 Chairman’s introduction 86 Board of directors 88 Corporate governance report 99 Nomination and Corporate Governance Committee report 104 Audit Committee report 111 Report on directors’ remuneration 135 Directors’ report Financial highlights

Financial statements Growth % at Growth % at Growth % at Growth % at 139 Financial statements contents Statutory actual rates constant rates Benchmark actual rates constant rates 140 Independent auditor’s report Revenue Revenue – ongoing Group financial statements activities 147 Group income statement +4% +6% +4% +7% 148 Group statement of comprehensive income 149 Group balance sheet US$5,372m US$5,357m 150 Group statement of changes in equity (2020: US$5,179m) (2020: US$5,161m) 151 Group cash flow statement Operating profit Benchmark EBIT¹ 152 Notes to the Group financial statements Company financial statements US$1,183m 0% +4% US$1,385m 0% +3% 206 Company financial statements (2020: US$1,185m) (2020: US$1,386m) 208 Notes to the Company financial statements Profit before tax Benchmark profit 220 Shareholder and corporate information before tax +14% +6% +1% +5% 222 Glossary US$1,077m US$1,265m To download this Annual Report (2020: US$942m) (2020: US$1,255m) and our other corporate literature visit www.experianplc.com Basic EPS Benchmark EPS

Roundings USc88.2 +18% +5% USc103.1 0% +4% Certain financial data has been rounded in this report. (2020: USc74.8) (2020: USc103.0) As a result, the totals of data presented may vary slightly from the actual arithmetic totals of the data. 1 From ongoing activities. Exchange rates The 2020 financial highlights have been re-presented following the reclassification of our Consumer Services business in Latin America Principal exchange rates used are given in note 10 to the to the Consumer Services business segment. See note 9 to the Group financial statements for further detail. Group financial statements. The average pound sterling to US dollar rate is 1.31 (2020 1.27). See note 6 to the Group financial statements on page 160 for definitions of non-GAAP measures. Experian plc Annual Report 2021 01

An unprecedented year Strategic report The past year was not one that we, or anyone, could have predicted. For many it has been a time of great hardship and loss. The COVID-19 pandemic is sadly not over yet and we are all working through its impact, the long-term effects of which are unknown. At Experian, we have played an essential role in helping people, businesses, governments, and society manage through the crisis. We have helped our employees adapt to remote working and we have reoriented how we engaged with tens of thousands of clients. A good performance, demonstrating the resilience of our business Experian delivered growth in FY21. Organic revenue growth was 4% and total revenue growth from ongoing activities was 7% at constant currency. North America and Brazil performed strongly, offsetting declines in UK and Ireland, and EMEA/Asia Pacific. Our ability to grow, even in a crisis, reflects the strength and diversity of our portfolio. It also reflects our commitment to innovation and to the millions of relationships we have established with consumers. Looking ahead to FY22 we are poised for strong growth. Our addressable markets are large and expanding, and we are well placed to take advantage of a number of compelling opportunities.

Brian Cassin Chief Executive Officer

We play a vital role for

People Businesses Communities, governments Empowering them to better Helping them to make more and charities understand their financial position, to informed and better decisions. Using data to help the most take control of their finances and vulnerable in society and to support manage their financial health. economic growth. 02 Experian plc Strategic report

Experian at a glance Global technology and innovation

We are a global technology company playing a key role in making it easier for consumers and businesses to interact. We help them manage their financial health, make informed decisions and seize opportunities. We embrace innovation and harness technology to expand access to credit, support responsible lending, modernise processes and better protect against fraud and identity theft. Our talented and diverse workforce serves customers worldwide from 44 countries. We manage and organise ourselves across four geographic reporting regions and two business segments.

Our business activities Business-to-Business Consumer Services Data Decisioning Revenue - ongoing activities1 Revenue - ongoing activities1 Revenue - ongoing activities1 US$2,866m US$1,184m US$1,307m +2% -4% +17% We help businesses to identify and understand We are experts at creating and developing We help consumers take control of their credit, their customers and to lend responsibly and innovative analytical and decisioning tools. making it easier for them to manage their appropriately, providing them with the We help businesses to manage their financial position, receive financial education, information to help them manage the risks customers, minimise the risk of fraud, access credit offers, and protect themselves associated with lending. We also help them comply with legal requirements and from identity fraud. build a better understanding of consumers’ automate decisions and processes. preferences.

1 % growths shown are organic revenue growth at constant exchange rates.

Revenue from ongoing activities by region and business activity (US$m) Business-to- Consumer Total Data Decisioning Business Services US$m % split A North America 1,761 694 2,455 1,075 3,530 65 B Latin America 457 92 549 76 625 12 C UK and Ireland 361 220 581 156 737 14 D EMEA/Asia Pacific 287 178 465 n/a 465 9 Total 2,866 1,184 4,050 1,307 5,357

17,800* employees globally

bn DataLab 1.3 London Consumer credit 166m history records Business credit history records DataLab San Diego

DataLab 44 Singapore Countries

110 m DataLab Free consumer São Paulo membership base

North America Latin America UK and Ireland EMEA/Asia Pacific See page 58 See page 59 See page 60 See page 61 * Figure does not include recent acquisitions in Spain and Brazil. Experian plc Annual Report 2021 03 Strategic report

Our strategic focus areas Our sustainable business strategy

See page 26 See page 38

1 OUR PURPOSE Make credit and Creating a better lending simpler, faster and safer for consumers tomorrow and businesses

5 2 Enable businesses Empower Improving financial health for all to find, understand consumers to improve and connect their financial lives THROUGH OUR with audiences Core Social Community Our products Innovation investment customers ENABLED BY

4 3 Treating data with respect

Help organisations Help businesses Security Accuracy Privacy Transparency in specialised vertical verify identity and markets harness data and combat fraud analytics to make smarter decisions SUPPORTED BY

Inspiring Working Protecting and supporting with the our people integrity environment

Our investment case, a unique proposition

See page 14

We are a leader in global Strong foundations support our We place a strong emphasis We remain financially well information services with strong growth potential on environmental, social and positioned positions in growing markets governance (ESG) criteria 04 Experian plc Strategic report

Chairman’s statement Supporting our customers, clients and communities in challenging times

Responding to the crisis in a purpose- led way – using data for good The pandemic has demonstrated the power of data as a force for good in difficult times. Data-led decision-making has been critical in helping us to take on the biggest challenge in a generation. In the USA, we developed the COVID-19 Outlook & Response Evaluator (CORE) tool to predict future hot zones for the virus – a free application that allows health and government leaders to forecast how a specific area may be affected. Mike Rogers In the UK, we launched Experian Safeguard, a Chairman dashboard based on anonymised data insights, to help organisations, including food banks and local authorities, to plan and allocate their resources based on those who need it most. The pandemic has demonstrated the power of data as a force for good In Brazil, the COVID Radar Panel provided information about the pandemic to partners, in difficult times. Data-led decision- offering them a detailed view on COVID-19 making has been critical in helping movement by city and even by neighbourhood, us to take on the biggest challenge to allow the adoption of quick and assertive in a generation. Experian moved measures in the most affected areas. quickly to make our data insights available to governments, health Supporting global financial health services, communities, businesses Alongside these data-driven initiatives, our United for Financial Health programme has used and charities, so they could better financial education and partnerships to help the respond to their challenges. We also people hit hardest by the COVID-19 crisis. worked rapidly with lenders and To date, we have worked with 11 new non-profit governments to support financial organisations in the USA, UK and Brazil, accommodation programmes, When I wrote about COVID-19 affecting the world providing resources, funding, products and making sure financial support in our 2020 Annual Report, I never expected this volunteers as part of our mission to improve 2021 statement would be a reflection on living financial health worldwide. reached those in need. and working amid the global pandemic for a further 12 months. We have reached 35 million people so far, more than doubling our programme target of reaching It has been an extraordinary year, yet we have 15 million people this year. Our aim is to reach stayed true to our purpose and achieved a strong 100 million people in total by 2024. performance. Once again, Experian has shown it can withstand external shocks and grow even in We have offered credit education, advice and free the most challenging of circumstances. Our tools to consumers and businesses across the resilience is due to the diversity of our portfolio, globe. I am proud that more than 110 million the strength of our culture and the focus of our people can now access their credit reports free strategy on innovation-led growth. We expect to on our consumer platforms, helping them better emerge from the pandemic in good shape, with understand their credit profiles, save money and an abundance of opportunities to pursue despite navigate their personal financial needs. operating in many of the worst-hit countries. Furthering our efforts to help consumers, our Throughout the pandemic, our people remained Social Innovation programme invests in new focused on supporting customers, governments products specifically designed to offer additional and the communities we serve: I found the societal benefits as well as creating revenue for commitment of Experian colleagues across the our business. Through Social Innovation, we have world inspiring. reached 61 million people in the last eight years – including 28 million this year – with a target For example, Experian moved quickly to make of reaching 100 million by 2025. our data insights available to governments, health services, communities, businesses and These are examples of the purposeful activity charities, so they could better respond to their that helps contribute towards reaching the three challenges. We also worked rapidly with lenders United Nations Sustainable Development Goals and governments to support financial we’ve identified as those we can influence, all of accommodation programmes, making sure which we are addressing through our strategic financial support reached those in need, and focus on improving financial health. You can ensuring that economies kept moving as well read more on page 38. as possible during lockdowns. Experian plc Annual Report 2021 05

As part of a continued focus on improving our People and culture Committed to data privacy Strategic report sustainability disclosure, this year we have The innovative solutions we provide to As we plan for the future, we are also acutely started reporting to the recommendations of the customers are made possible by our people. aware of our responsibilities when managing the Sustainability Accounting Standards Board information we are entrusted with. Data is critical Throughout the pandemic, we have adopted a (SASB) framework. to economic growth, but it must be managed and ‘people first’ agenda. Colleagues have had to used appropriately. Our commitment to the environment work in very different circumstances, and we have supported them by offering the flexibility Experian holds vast amounts of data, and we We acknowledge our responsibility to help they need for their changing world. have a responsibility to make sure it is kept safe protect the planet for future generations, and we and used only in the most appropriate and have set ambitious new targets to benchmark As we emerge from the lockdowns, we will responsible ways. Maintaining the highest levels our progress. continue to adopt new ways of working and we of security is fundamental to our business and will give much of our global workforce more Our aim is to be carbon neutral in our own we follow strict regulations for managing and flexibility to work to a pattern that suits them and operations by 2030. FY21 is the first year for using data in compliance with all relevant laws. benefits Experian. which we’ll offset a portion of our emissions, We're firmly committed to doing the right thing offsetting 20% of our emissions with the goal I remain incredibly proud of our growing diversity when it comes to working with consumer data of reaching 100% in FY25. at Experian, and we continue with a strong focus and have programmes that evaluate every on recruiting, retaining and developing We are also announcing science-based targets product and service to ensure we strike the right colleagues who fully reflect the rich diversity of to cut our Scope 1 and 2 emissions by 50%, balance between privacy considerations and the the communities we serve. We believe this and our Scope 3 emissions by 15% by 2030. economic benefit to customers. Furthermore, we achieves both better outcomes for customers are continually investing in our multi-layered In addition, we are proud to be a public supporter and superior business performance. information security programme to prevent, of the Task Force on Climate-related Financial This year we hired our first-ever Chief Diversity detect and mitigate cyber security risks in all our Disclosures (TCFD) and our ‘A-‘ rating from the Officer in our North American business, and our markets. CDP (formerly known as the Carbon Disclosure global leaders are serving as executive sponsors Project) places us in the leadership category for for key diversity pillars – gender, race and our disclosure on climate risks and opportunities. The future – performance with purpose ethnicity, disability, LGBTQ+ and mental health. Looking ahead, we have a clear strategy of Positioned for growth with I would like to express my thanks on behalf of innovation-led growth to capture the potential digital technology the Board to our 17,800 employees, who have from a number of substantial and exciting shown remarkable resilience and commitment, addressable markets, so growing shareholder Innovation has always been a central belief of and without whose talents we could not achieve value further. Experian’s business, and we are well positioned success for customers or shareholders. to take advantage of trends and opportunities Financial performance this year was resilient. we have identified in the market. The pandemic We delivered 4% organic revenue growth, led by has changed the behaviour of consumers, and Governance and the Board North America and Latin America, which helped of how businesses operate, in many cases Strong corporate governance has always been at to offset weaker performances elsewhere. accelerating exciting trends towards the the heart of the Experian business, and we Portfolio diversity, strong execution and our adoption of digital business models – I would maintain the highest standards as set out in the commitment to long-term strategic investments encourage you to read more about these UK Corporate Governance Code 2018. were all contributory factors, helping the Group withstand the trading challenges posed by the trends on page 18. I am pleased our current Board meets the pandemic. It is also worth noting that Experian recommendations of both the Hampton- We have adapted quickly to the changing ended the year in a strong funding position, was Alexander Review on gender diversity and the environment and continued with our significant able to move forward with some exciting Parker Review on ethnic diversity. programme of investment. This is helping investments to extend the franchise, while us to build fast-growing franchises in areas During the last financial year, we were delighted maintaining the final dividend in line with the like Experian Consumer Services and to welcome Alison Brittain as an independent prior year. Experian Health. non-executive director. Her impressive career of Our people’s professional and personal over 25 years of senior management experience We have also moved forward with the responses to COVID-19 and the results achieved at a variety of major financial institutions, and as internationalisation of our ground-breaking have been remarkable. We have helped people, a FTSE 100 Chief Executive, means Alison is an innovations like Experian Ascend and our Open organisations and government use data to make invaluable addition to the Board. I look forward to Data platform. For example, we introduced a raft a difference and have extended our commitment working closely with her over the coming years. of propositions to take advantage of the new era to supporting financial health around the world. of positive data in Brazil, a market change that In March 2021, we announced that Jonathan So we enter next year with strong foundations will greatly enhance fair access to credit for Howell would join the Board in May 2021 as an for further growth and the confidence that the Brazilian population. independent non-executive director. Jonathan is comes from knowing that, through the most a highly regarded FTSE 100 Chief Financial We have remained rightly ambitious, so we have challenging of times, we continue to work Officer, and also brings a wealth of relevant not let up on geographic expansion (for example towards our purpose of creating a better expertise and extensive board-level experience. our German acquisition) or in building new tomorrow. franchises such as verification services. There were no other changes to the Board during the period. These are just a few examples of the geographic growth and innovation-led growth at the heart of our strategy. 06 Experian plc Strategic report

Chief Executive’s review A resilient performance spurred by innovation, teamwork and empathy

businesses and consumers make better- informed decisions about their futures. Our financial performance was robust. Total revenue growth was 7% at constant currency, while organically we grew 4%. Consumer Services deserves special mention, delivering 17% underlying growth in the year and reaching 110 million members globally. We benefitted from growth in B2B platforms across many territories. Combined with continued expansion in key verticals like health, and growth in counter-cyclical revenue streams such as US mortgage, this enabled us to offset declines in Brian Cassin some parts of our business caused by the Chief Executive Officer COVID-19 economic downturn. We benefitted both from our portfolio diversity and from the strategic investments we have made over many years, and we continued to invest in our Experian delivered a strong business in FY21. performance this year, even as the world faced the testing times Full-year financial highlights posed by the COVID-19 pandemic. We have again shown Experian’s resilience in the face of external Revenue growth was 7% at constant currency and organic revenue growth was shocks, which is due to the 4%. At actual exchange rates revenue growth diversity of our portfolio and was 4%. our successful innovation-led Organic revenue growth in North America investments in new opportunities. was 7% and 9% in Latin America, including FY21 was a year when we very strong contributions from Consumer unlocked the power of Services. The UK and Ireland and EMEA/Asia Pacific regions were impacted negatively, data for consumers, clients down (6)% and (14)% respectively. and communities across Experian delivered another successful year of B2B organic revenue growth was flat. Growth growth even as the COVID-19 pandemic posed the world. in North America Data and Decisioning was significant challenges to people, clients, and the offset by declines elsewhere. world economy. I am proud of the accomplishments of our 17,800 people around Growth in Consumer Services was very the world who have shown incredible resilience strong, with organic revenue up 17%, driven and passion, and who have worked tirelessly to by North America and Brazil. serve our various communities over this year. In Growth in Benchmark EBIT was 3% at recognition, we intend to make a special one-off constant exchange rates and flat at actual share-based award to recognise the outstanding exchange rates after currency translation commitment of our people this year. headwinds. The COVID-19 pandemic has demonstrated how Our Benchmark EBIT margin was 25.9%, Revenue properly managed data can be used as a down 80 basis points at constant currency – ongoing activities significant force for good and has been used by and down 100 basis points at actual decision-makers to navigate the immediate exchange rates. This was after deliberate US$5,357m crisis and to direct resources to where they action to support our people through the 1 were most needed. Our people were crisis, increased marketing investment and +4% instrumental in using innovative data science to investment to support new product innovation and technology transformation. Benchmark EBIT predict hot zones for the spread of the virus. We – ongoing activities stepped up to launch financial education We delivered growth in Benchmark earnings projects aimed at supporting communities per share of 4% at constant exchange rates US$1,385m impacted by COVID-19. We supported and flat at actual exchange rates. + %2 governments, charities and food banks to help Cash flow was very strong, with a conversion 3 the most vulnerable during the pandemic, and rate of Benchmark EBIT into Benchmark we provided health and data modelling tools to operating cash flow of 106%. assist with co-ordination of national efforts. We ended the year in the lower half of our These are just some examples of how we have leverage range at 2.2x (on a pre-IFRS 16 placed the power of our data and innovation in basis), compared to our target of 2.0-2.5x for 1 Organic growth at constant service of society. As we look out to the Net debt to Benchmark EBITDA. exchange rates. economic recovery in the months ahead, data 2 At constant exchange rates. will be a critical driver of growth, helping Experian plc Annual Report 2021 07

B2B organic revenue was flat overall, North America delivered organic revenue expenditure in support of Consumer Strategic report recovering as the year progressed, with growth of 16%. We are investing behind the Services. We have also invested in and H1 (2)% and H2 +2%: success of Experian Boost, which now has materially progressed our technology 6.7m unique account connections. Our transformation as we migrate from Growth in North America and Latin America membership continued to grow and we mainframes into a distributed framework offset declines in other regions. Strength in launched a new vertical, automotive utilising the cloud, and we continued to invest US mortgage volumes, Experian Ascend, insurance, which performed strongly, and in new product innovation. health and fraud and identity services helped which offers significant further growth to offset weaker conditions for unsecured We previously announced that we have opportunities in FY22 and beyond. credit origination, decisioning software and embarked on a transformation programme marketing expenditure by clients. Our Latin America revenues more than in the UK and Ireland to simplify our doubled in the year at local currency, with technology estate, enhance customer We made further headway with the roll-out revenue up 144% organically. experience and to return to profitable growth. and scaling of our core B2B platforms. The The programme is progressing well and to cumulative total contract value for Ascend is Consumer Services in the UK recovered as plan. As previously announced, these actions US$374m and we continue to make progress the year progressed, returning to growth in have given rise to an exceptional with Experian One, CrossCore and our Open H2. We launched Experian Boost in the UK in restructuring charge of US$50m in FY21. We Data platforms. early November and now have 370,000 active Boost members. are on course to deliver year-on-year Health delivered another year of growth, run-rate savings of US$40m in the year automotive was stable and we have ending 31 March 2022. expanded our position in employment and Operating efficiency The net effect asw that EBIT margin for the verification services. year reduced to 25.9%. For FY22, we expect In Brazil, we had significant success strong accretion in the EBIT margin. extending our relationships with some of One of our key operating principles to our largest financial services clients as manage throughout the COVID-19 crisis has we signed expanded new multi-year been to retain capacity to recover strongly Funding and liquidity agreements, and we saw good growth in and to help our people to cope with the crisis. positive data propositions. We did not use any government furlough schemes. We further strengthened our funding position We had an outstanding year in Consumer while also supporting investment activities. Services, which delivered 17% organic revenue We deliberately balanced our approach to growth, with H1 +13% and H2 +22%: cost management. We cut back on We continued to invest in data, technology discretionary spend, froze headcount, and and innovation through capital expenditure. We now have 110 million free consumer delayed non-critical investment. We also Capital expenditure reduced by (13)% to memberships, up by 28 million year-on-year. supported our people and sustained critical US$422m, which represented 8% of total We have 41 million free members in the USA, growth investments. We took concerted revenue. For FY22, we expect capital 59m in Brazil and 9.5 million in the UK. action to increase investment in marketing expenditure to represent circa 9% of total revenue. We took steps to expand the reach of our Revenue and Benchmark EBIT by region, Benchmark EBIT margin portfolio through a number of inorganic investments. These included: 2021 20202 Total growth1 Organic growth1 US$m US$m % % –– The expansion of our bureau estate with Revenue the acquisition of a majority stake in a North America 3,530 3,247 9 7 German credit bureau (the Risk Management division of Arvato Financial Latin America 625 732 9 9 Solutions) and of the Spanish credit UK and Ireland 737 755 (6) (6) bureau, Axesor. EMEA/Asia Pacific 465 427 7 (14) Ongoing activities 5,357 5,161 7 4 –– We also accelerated our entry into the verification services vertical with the Exited business activities 15 18 n/a acquisition of employer solutions provider Total 5,372 5,179 6 Corporate Cost Control. After the year end, we acquired Tax Credit Co (TCC) and Benchmark EBIT Emptech, which also add to our income North America 1,201 1,093 10 verification business in North America. Latin America 172 220 4 –– Consistent with our ambitions to extend UK and Ireland 173 (34) 122 our position in fraud and identity EMEA/Asia Pacific (20) 12 (232) management, we acquired Tapad, a leader Total operating segments 1,475 1,498 2 in resolution of digital online identities and Central Activities – central corporate costs (90) (112) n/a BrScan, a leading player in Brazil. Benchmark EBIT from ongoing activities 1,385 1,386 3 –– Total acquisition outflow in the year was Exited business activities 1 1 n/a cash of US$583m and 7.2m Experian Total Benchmark EBIT 1,386 1,387 3 plc shares. Benchmark EBIT margin – ongoing activities 25.9% 26.9%

1 At constant exchange rates. 2 Results for FY20 are re-presented for the reclassification to exited business activities of certain B2B businesses. See the Financial review for analysis of revenue, Benchmark EBIT and Benchmark EBIT margin by business segment and note 6 to the Group financial statements for definitions of non-GAAP measures. 08 Experian plc Strategic report

Chief Executive’s review continued

We have announced a second interim Foreign exchange translation was a 4% headwind among our senior leaders from 32% to 40% dividend of 32.5 US cents per share, to Benchmark EPS in the year. This was by 2024, supporting the commitment we unchanged year-on-year. This will be paid on predominantly due to the Brazilian real, which made this year to the UN Women’s 23 July 2021 to shareholders on the register weakened by 31% relative to the US dollar versus Empowerment Principles. at the close of business on 25 June 2021. the prior year. For FY22, we expect a neutral Following a recent appointment, our Board is We have also announced that we will impact to Benchmark EBIT, assuming recent now comprised of 36% women and 73% commence a US$150m share repurchase foreign exchange rates prevail. independent members (including the programme, which will mainly offset Chairman). We continue to meet the deliveries under employee share plans. Environmental, Social, recommendations of the Hampton-Alexander During the year we undertook two bond and Governance (ESG) Review on gender diversity and the Parker issues totalling US$1.1bn. Including these, Review on ethnic diversity. our bonds total US$4bn and have an average A key priority for Experian is to improve the Experian featured in the S&P Global remaining tenor of six years. financial health of the communities we serve. Sustainability Yearbook 2021 as a leader on At 31 March 2021, we had no drawn bank This is how we can use our data and ESG, scoring in the top 15% of the debt and held US$2.65bn of undrawn expertise to make the biggest difference to professional services industry. committed bank borrowing facilities which society, helping us to contribute to three Our commitment to help tackle climate have an average remaining tenor of four United Nations Sustainable Development change and reduce our impact on the years. These include our core US$1.95bn Goals, namely targets 1.4, 8.10 and 9.3, which environment is reflected in our CDP rating of club facility which is undrawn and committed relate to improving access to financial ‘A-‘. This places us in the leadership category until December 2025. services and credit. and among the top 14% of professional As at 31 March 2021, Net debt to Benchmark This year we have reached 28 million people services companies for our disclosure on EBITDA was 2.2x (on a pre-IFRS 16 basis), with our Social Innovation products specifically climate risks and opportunities. compared to our target leverage range of 2.0- developed to deliver societal benefits and This year we have cut our absolute carbon 2.5x. improve financial health. Examples include emissions by a further 58% and reduced our Social Determinants of Healthcare, which carbon intensity by 60% (Scope 1, Scope 2 Other financial developments helps people in the USA to avoid major medical market-based and Scope 3 emissions). This bills in future, and a financial online training reduction was mainly due to the decrease in Benchmark PBT was US$1,265m, up 5% at module in Brazil to help people manage their constant currency and 1% at actual rates, after air travel as a result of COVID-19 restrictions. finances. This brings the total number of As business activities resume, we’re lower net interest expense of US$121m (2020: people reached since 2013 to 61 million, US$132m). The reduction reflects lower average expecting to see an increase in air travel putting us on track to meet our target of 100 trends and we will continue looking into global interest rates. For FY22, we expect net million people by 2024. interest expense to be around US$115-120m. carbon reduction initiatives to help decrease A year ago, we launched United for Financial our footprint sustainably and in the long term. The Benchmark tax rate was 25.9% (2020: Health, a financial recovery programme Building on last year’s commitment to be 25.8%). For FY22, we expect a rate in the range of partnering with NGOs to help communities carbon neutral in our own operations by 2030, 26% to 27%, taking into account expected profit significantly affected by COVID-19. For we are today announcing a science-based mix for the year. example, we partnered with Operation HOPE target to cut our Scope 1 and 2 emissions by Our Benchmark EPS was 103.1 US cents, an to reach ethnic minority groups in the USA 50% by 2030, and our Scope 3 emissions by increase of 4% at constant currency and flat at with support to raise credit scores, and the 15% by 2030. Having committed last year to actual exchange rates. The weighted average National Literacy Trust in the UK. We have gradually carbon offset our Scope 1 and 2 number of ordinary shares (WANOS) increased to reached 35 million people and small emissions over the five years to 2025, we are 910m (2020: 902m), inclusive of the shares businesses across the USA, Brazil and the offsetting 20% of our FY21 emissions. delivered in connection with the purchase of our UK and Ireland this year. We are also stake in the Risk Management division of Arvato expanding into EMEA and Asia Pacific. Outlook Financial Solutions. For FY22, we expect WANOS As part of our ‘people first’ agenda we will be As the global recovery gathers pace, we believe of circa 915m. making a special one-off share-based data will be a key driver of economic growth. recognition award to our people for their Benchmark operating cash flow increased 22% We are off to a strong start to FY22 which gives commitment to Experian during the us every confidence of another successful year at actual rates and our cash flow conversion COVID-19 pandemic. was 106% (2020: 88%). The increase is due to ahead. We expect organic revenue growth in the the mix of growth, strong control of working We have undertaken an extensive review of range of 7-9%, total revenue growth of 11-13% capital, reduced infrastructure investment, our Diversity, Equity and Inclusion strategy, and strong EBIT margin accretion, all at and some phasing. and aim to increase the number of women constant currency.

Year-on-year % change in organic revenue – for the year ended 31 March 2021

% of Group Consumer revenue Data Decisioning B2B1 Services Total North America 65 5 2 4 16 7 Latin America 12 1 2 1 144 9 UK and Ireland 14 (5) (7) (6) (6) (6) EMEA/Asia Pacific 9 (8) (20) (14) n/a (14) Total Global 100 2 (4) 0 17 4

1 B2B = Business-to-Business segment consists of Data and Decisioning business sub-divisions. Experian plc Annual Report 2021 09 Strategic report

Transforming lives with

Experian Decision Analytics’ PowerCurve recognised as a winner of the 2021 Artificial Intelligence agility and Excellence Award 60% of people now have speed in higher expectations of their online experiences than the cloud before COVID-19

Cloud-based decisioning is Consumers around the world are facing increasing critical to an organisation’s ability financial pressures and need more support than to quickly and nimbly support ever from organisations. COVID-19 and natural their customers. The COVID-19 disasters have intensified consumer need for quick crisis has accelerated the need and relevant support. And they’re demanding it – for solutions that are fast to install, secure, can easily scale to 60% of people now have higher expectations of meet emerging needs and their online experiences than before COVID-19. changes in demand, and upgrade At the same time, organisations have faced significant business seamlessly. disruption, such as overwhelmed call centres, and older, less flexible Donna DePasquale processes that can’t adapt as rapidly to changing circumstances, Executive Vice President and General impacting customer service, and causing delays. Organisations are having Manager, Decisioning, Experian to navigate this complexity, to change at pace, and take decisive action. By using automated decisioning solutions, such as our enhanced cloud-based PowerCurve solutions, businesses can upgrade and accelerate their digital transformation to effectively address these challenges. Coupled with our powerful datasets they can make decisions with speed and agility, while still supporting customers and providing them with a personalised, consistent experience. Our cloud solutions help businesses simplify their IT environments, lower costs, and nimbly scale up and down to meet consumer demand as needed. Businesses have access to our continuous innovation through accessible upgrades and smaller companies can take advantage of data and analytics previously out of reach. And, because there’s no software to install, they can be ready to test in days and go live in weeks rather than months.

10 Experian plc Strategic report

Our purpose in action – COVID-19 response Supporting you during the pandemic and beyond

The COVID-19 pandemic has impacted millions of people and Globally organisations around the world and, more than a year in, many are still grappling with its mental, emotional, and financial toll. Facilitating access to fair Among the more pressing issues for people has been navigating and affordable credit the financial landscape and hardships brought on by illness and As people and businesses get more and more unemployment. It has also exacerbated underlying financial stretched during times of crisis, the ability to access credit, or have forbearance on existing issues for already marginalised groups in society. For businesses credit is vital. It can be the difference between it has meant navigating operational closures, changes to revenue sinking or making it through. We remain models and increasing fraud attacks. committed to helping lenders and governments maintain access to the credit economy, and In response we developed several solutions which provide education, advice and continue to support consumers to protect their free tools to consumers and businesses. We have also worked with charities and credit standing and financial health. governments to ensure that financial relief reaches the people and businesses that need it most. We stepped up financial Yet there are signs of hope and resolution ahead. People’s concerns about personal education for consumers finances are starting to ease and they are more comfortable with the security and We stepped up financial education for convenience of online shopping and banking. Businesses are embracing new consumers so they could benefit from opportunities to serve the growing ranks of online customers and are preparing accessing resources and educational materials for the future as pent-up consumer demand is released. to learn about credit and other important personal finance topics. Giving them the information and tools so they can make more informed decisions during difficult times.

We launched United for Financial Health to empower and protect vulnerable consumers United for Financial Health is a new financial recovery programme to empower and protect vulnerable consumers hardest hit by COVID-19, helping them to improve their financial health through education and action. So far, we’ve partnered with 11 non-profit organisations in the USA, UK and Brazil, to deliver tools and resources to help those affected the most. During FY21 we’ve reached 35 million people, Our employees have risen to the far above our first-year target of 15 million. challenge of providing practical See page 42 for more detail. assistance, innovating at speed to help those immediately affected and 35 million help them better position themselves People reached as they recover from COVID-19 related hardships. We knew early on in the pandemic that we had an important part to play and pivoted our efforts to do just that. Looking forward, we remain committed to developing new ways to use our resources, data, technology and creativity to be part of the solution and long-term recovery. Highlighting the impact of Brian Cassin the global pandemic Chief Executive Officer Our research, such as in our Global Insights Report and Global Data Management Research Report, is helping organisations understand how the pandemic has impacted data perception and usage, as well as consumer behaviours and business strategies, and helps them understand how important it is to quickly identify and support those who are facing short-term challenges as well as the vulnerable. Experian plc Annual Report 2021 11 Strategic report North America

Making life easier for hospital and healthcare administrators We developed a free Payer Alerts Community COVID-19 Portal for healthcare administrators that provides a comprehensive overview of the US$130,000 latest policy and procedure changes from has helped 21 families stay medical insurers and payers, with 8,509 alerts in their homes available to users. Allowing administrators to quickly respond to those changes, ensure smooth processing of payments and freeing up their time to deal with other issues. So far, 1,732 organisations and 2,049 users, from all 50 US states, have taken advantage of the Helping families keep their homes Improving financial health with portal during the pandemic. and promoting financial inclusion increased access to credit reports We partnered with the NAACP¹ and created Free weekly credit reports from March 2020 Home Preservation Grants to support to March 2022 for all Americans via African-American homeowners facing AnnualCreditReport.com. COVID-19 related hardship who are at risk of losing their homes. We donated US$150,000 Innovating to support informed to the NAACP for financial education and decisions and help mitigate risk mortgage relief, of which US$130,000 has We built the Ascend Portfolio Loss Forecaster, helped 21 families stay in their homes with a new tool for lenders that uses Experian’s data, grants of between US$2,000 and US$10,000 along with up-to-date macroeconomic per recipient. forecasts, to help them analyse risk accurately across consumer loan portfolios.

Guiding healthcare and government efforts to help the at-risk We created a free interactive heatmap showing populations in the USA most susceptible to developing severe cases of COVID-19: to help inform and guide efforts around communications, outreach to high-risk populations, align healthcare, community and government programmes, and plan Helping lenders understand small Backing innovation to help solve global for the recovery. businesses' unique circumstances challenges, level the playing field and We launched a free COVID-19 US Business create new opportunities Risk Index to assist lenders and government We've supported Massachusetts Institute of organisations in understanding how to make Technology's Solve programme by committing fair and responsible lending to small up to US$100,000 for the Good Jobs & Inclusive businesses that need it the most during this Entrepreneurship and Learning for Girls & time. Our analysts built the dashboard's first Women. Each of which is working to solve iteration in one weekend to provide easily financial health issues which have arisen for accessible, relevant insights in response to consumers as a result of COVID-19. the rapidly advancing virus.

1 National Association for the Advancement of Colored People. See www.naacp.org for more information. 12 Experian plc Strategic report

Our purpose in action – COVID-19 response continued

Supporting Brazilian consumers Latin America to pay off their debts We held our debt negotiation fair (Feirao Limpa Colombia and Peru Nome) online this year, bringing on even more Helping consumers in Colombia and Peru partners and greater discounts to support manage their financial health Brazilian consumers in paying off their financial Our free credit reports and scores have enabled debts during such challenging economic times. people to manage their financial health. In Overall, it was our biggest fair to date, we Colombia, since April 2020, more than one helped 3.6 million people, and saw a record million people have had access to their credit 6.2 million agreements reached with lenders. history for free. From mid-April 2021, we extended this free access to SME businesses. 3.6 million Colombia Brazil Brazilians supported to renegotiate their debts during our online Assisting the government to prioritise Applying data science to enable fast access to Limpa Nome fair those most in need data for researchers and public health workers We helped the Colombian Government to We built and launched a new data platform, the segment the low-income population. Our COVID Radar, in just three weeks, and mobilised information became an additional tool for them a public-private partnership of more than 60 Backing micro and small entrepreneurs to use so they could deliver special subsidies companies and organisations, to use data to to create innovative business solutions to help support these households during the fight the pandemic and help with Brazil’s We’re backing small companies with our difficult economic situation caused by economic recovery. It provides real-time ‘SME challenge’, a nationwide contest to support COVID-19, So far, in the first stage alone information on COVID-19 cases in Brazil and entrepreneurs' innovation projects and help 1,162,965 subsidies were delivered by the analytical tools to help predict its progression. them overcome the pandemic challenges they government. In addition to providing case monitoring and were facing. disease forecasting, the COVID Radar integrates and connects companies with the hospitals and 1,325 companies entered the competition, all of communities that need donations of ventilators, whom had free access to our online financial personal protection equipment, or other education course and their credit score. They supplies. also received mentorship from our employees who volunteered more than 500 hours to work with the companies, Overall, 20 companies won a cash prize of R$25,000 each to invest in the implementation of their ideas and contribute to the development of the entrepreneurial culture in Brazil.

Protecting people’s credit scores UK and Ireland Along with Equifax and TransUnion, we helped implement a special measure called Supporting charities to help identify an 'emergency payment freeze' to ensure that vulnerable people an individual’s current credit score is protected We offered our Affordability Passport to for the duration of an agreed payment holiday organisations, including debt charities and with their lender. lenders, free of charge for three months to help them identify customers who could be left vulnerable due to changes in their Assisting public organisations including financial circumstances. health services in planning their response We created a new dashboard tool, called Experian Safeguard, for local authorities, NHS trusts, fire services, and major charities to help them prioritise those most in need during Helping disadvantaged school the pandemic. Developed in just two weeks, children get online it enabled the identification of geographic We’re helping close the ‘digital divide’, between areas where vulnerable people lived, allowing families with laptops and internet access, and targeted community care to be delivered those without, whose school-aged children to them. have been struggling to keep up with online classes during the pandemic. Overall, for the UK and Ireland we donated £170,000 for student laptops, of which £100,000 was used to match donations from Mail Force's ‘Computers For Kids’ campaign via The Big Give, helping to raise £200,000 for the initiative. £170,000 for student laptops Experian plc Annual Report 2021 13

Italy Strategic report EMEA / Asia Pacific Guiding businesses and supporting them to react quickly EMEA By providing free feasibility studies for Educating businesses on urgent issues businesses we’ve helped them to analyse Across the EMEA region we helped businesses current market conditions, assess the impact of address urgent issues arising from the change on their portfolios and decision-making pandemic through a series of dedicated processes, and identify critical issues and webinars on: fraud prevention, supporting small suitable solutions. and medium-sized enterprises, debt defence and collections strategies, the ‘new normal’ for digital, and the economic reboot and impact The Netherlands South Africa on regulation. Assessing portfolio risk Improving people’s lives through financial We wanted to help our clients quickly and literacy accurately find and mitigate risk in their We partnered with Rhiza Babuyile, a local NGO, portfolios, by providing an innovative Portfolio to launch a programme focused on incubating Health Web Data Check. This helped them entrepreneurs based in the townships of identify which of their SME clients may be Kyamandi and Fisantekraal, Cape Town. affected by the pandemic, giving our clients a We provided consulting assistance to ten chance to proactively protect their business entrepreneurs, who each have four to five while still supporting their clients in the most dependents, in the form of a business fair and appropriate way, helping to minimise assessment and one-on-one coaching. the impact of COVID-19. Plans are to continue the coaching and add masterclasses and training workshops.

Asia Pacific India Supporting the next level of customer Employee Relief Fund and fundraising drive experience to support colleagues and their families. With the surge in demand for digital services We extended our Employee Relief Fund to help from consumers Experian has been providing our employees and their families cope under businesses with extra support via cloud-based harsh pandemic conditions. We also provided and on-premise solutions, as well as helping to homecare support, extended health insurance, protect against fraudsters, whether that is to COVID-19 test cost reimbursement and differentiate legitimate consumers from business-wide well-being and mindfulness fraudsters, or swiftly respond to emerging sessions for our teams in India. A 48-hour fraud threats. fundraising drive saw colleagues across all our regions making personal donations, which Thailand, Vietnam and Sri Lanka were in turn fully matched by the Company. Malaysia Keeping consumers connected during Experian committed a further US$600,000 Credit education and tools for consumers uncertain times towards charitable efforts to provide and businesses Supported leading telecommunications emergency relief across India. Since the start of the pandemic we have companies, allowing them to rapidly provide Helping consumers manage provided consumers with free access to assistance to their subscribers to minimise credit health monitoring services and financial impacts and lockdown/movement their financial anxiety Our free credit reports enabled people to businesses with free access to credit risk controls of the COVID-19 outbreak. Staying take control of their financial health. management, digital customer relationship connected during movement control management, secure file sharing and storage, restrictions has proven to be critical, allowing and business analysis tools. 3.2 million consumers to gain access to essential services like food supplies and in Singapore managing the psychological effects of isolation. Supported small businesses We provided complimentary credit monitoring for 500 local businesses, helping them to 3.2 million embrace digitalisation and be ready to address consumers gained access to business continuity challenges. essential services like food supplies US$600,000 emergency relief across India 14 Experian plc Strategic report

Our investment case A unique proposition

We are a global technology company and a leader in data and analytics. Our data assets, both for businesses and consumers, are extensive. We have global reach and the capability to constantly innovate to fulfil new and emerging needs. The global COVID-19 pandemic has further accelerated the existing revolution in data, analytics and digitisation, and we are in a unique position to react to these trends. We take a client-first approach to product innovation, creating new products by investing in people, data and the science of data interpretation, aided by advanced technologies such as artificial intelligence, big data and machine learning. Through this, we aim to create a better tomorrow by improving the ways consumers and businesses can control their financial well-being and seize new opportunities. Experian’s roots are in providing credit information and assessing lending risks. This is still the foundation of our business but we also do much more – for lenders, individuals, telecommunications companies, governments, the automotive sector, US healthcare providers and many other industries. Our scale and diverse portfolio provide great resilience, helping us tackle unforeseen circumstances, such as a global pandemic, with confidence. We have mapped the addressable markets for Experian and they We are a leader in global information services are significant, estimated at US$130bn and growing. These with strong positions in growing markets markets are driven by accelerating digital adoption, the shift towards automated services, the growing requirement for We are a leader, holding the number one or two positions in customer authentication and consumers needing to access and our largest markets – the USA, Brazil and the UK. manage their credit. We target and allocate capital across our We have a diversified portfolio of businesses across different strategic focus areas to make credit and lending simpler, transform financial lives, and help businesses to combat fraud sectors and regions, operating in 44 countries. and to find customers across the segments in which we operate. Our business model is scalable, allowing us to grow revenues We have developed detailed plans to pursue these opportunities. quickly at low incremental cost. We are financially well positioned, with a strong balance sheet We achieve significant synergies across our operations, by and funding liquidity, and a proven record of converting operating combining data sources, integrating analytics and using profit to cash. This allows us to focus on key investment areas, balancing shareholder returns with the need for constant technology to offer differentiated propositions. innovation, as well as investing in organic business growth while We invest continually to secure opportunities across also pursuing strategic acquisition opportunities. specific addressable markets, which we have estimated at US$130bn. These five strengths combine to createa strong basis for future growth. Experian plc Annual Report 2021 15

Strong foundations support our growth potential Strategic report We continually invest in product innovation and new sources of data, to address changing macroeconomic factors and emerging market opportunities. We have direct relationships with over 100 million consumers, a situation unique in our industry. This provides a mechanism for us to engage directly with millions of people. We place a strong emphasis We have demonstrated our ability to adapt quickly to meet the on Environmental, Social and changing needs of our clients in unforeseen market conditions. We have great potential to introduce and expand our services in all of Governance criteria our markets over the longer term. We transform financial lives by helping people take control of their We are increasing our product offering in growing industry segments financial status – through our core offering, Social Innovation products such as US healthcare and automotive, and in expanding markets such and community investment. as Brazil. We safeguard futures by protecting our customers and their families from identity theft and fraud. We are introducing innovative ways for those who lack basic financial services to gain access to credit, for example through use of alternative data sources and financial education programmes. We help to protect the environment and manage the risks of climate change. We have consistently reduced our carbon footprint year-on-year and are committed to being carbon neutral in our own operations by 2030. We are committed to being a diverse and inclusive organisation, at all levels and across all regions. We have established detailed targets to achieve this, as set out in the Environmental, Social and Governance (ESG) section of this report on page 38.

We remain financially well positioned We have averaged 6% annual organic revenue growth1 since we became an independent listed company in 2006, sustaining positive organic growth through all macroeconomic conditions, including both the 2007/2008 global financial crisis and the 2020/2021 COVID-19 pandemic to date. More detail is available in the Financial review section of this report on page 62. Much of our revenue is highly recurring, as many of our products and solutions are mission critical and an integral part of our clients’ operating processes. We are a highly cash-generative, low capital intensity business. Our Benchmark EBIT to Benchmark operating cash flow conversion rate1 has averaged 99% since 2006. We make the best use of the cash we generate, balancing the need for organic investment in innovation and acquisitions with returns to shareholders, through dividends and share repurchases.

1 Please refer to note 6 to the Group financial statements for definitions of organic revenue growth and Benchmark EBIT to Benchmark operating cash flow conversion. 16 Experian plc Strategic report

Key performance indicators A resilient performance

Against a challenging external backdrop, we launched many new products, supported our employees, and helped many who were financially impacted by the pandemic. The strength of our business performance is evidenced by a range of key performance indicators.

See page 117 – Revenue performance Organic revenue growth is linked to directors’ remuneration Why is this important? It is a measure of our For a reconciliation of revenue from ongoing activities, including disclosure of organic and acquisition revenue, from the year 4% ability to provide innovative propositions and ended 31 March 2020 to 31 March 2021 see page 165. services for clients and consumers, and to % extend these into new industries and across 2021 4 many geographies. Aim To consistently achieve mid- to high 2020 8 single-digit organic revenue growth. 2019 9 Analysis Organic revenue grew 4%, with the main contributors being North America 7% 2018 5 and Latin America 9%, including very strong 2017 5 contributions from Consumer Services.

1 See page 117 – Benchmark EBIT Benchmark EBIT and Benchmark EBIT margin is a directors’ remuneration measure Why is this important? It measures how well EBIT was US$1,385m, up 3% at constant US$1,385m 25.9% we turn our revenue into profits, allowing us to exchange rates and flat at actual rates. generate returns for shareholders, and to Benchmark EBIT margin was 25.9%, down US$m % reinvest for future growth. 80 basis points before the impact of foreign 2021 1,385 25.9 Aim: To operate our business efficiently and exchange rates, and down 100 basis points cost effectively with stable EBIT margins. overall. 20202 1,386 26.9 Analysis: We protected our people, made the 2019 1,306 26.9 conscious decision to invest in marketing for Consumer Services, and continued our 20183 1,241 27.1 innovation and technology modernisation 2017 1,197 27.6 programmes. Overall, for the Group, Benchmark

1 From ongoing activities. 2 Results for FY20 are re-presented for the reclassification to exited business activities of certain B2B businesses. 3 Restated for IFRS 15.

See page 117 – ROCE is a directors’ Return on capital employed (ROCE) remuneration measure

Why is this important? It measures how 15.0% effectively we have deployed our resources and how efficiently we apply our capital. % Aim: To generate good returns on the 2021 15.0 investments we make and create long-term 2020 16.1 value for shareholders. Analysis: Our decision to sustain organic 2019 15.9 investment and to pursue attractive acquisition 20181 15.5 opportunities reduced ROCE in FY21. This year, ROCE was 15.0%, down 110 basis points on 2017 15.5 the prior year. 1 Restated for IFRS 15.

See page 117 – Adjusted Benchmark EPS Benchmark earnings per share (EPS) is a directors’ remuneration measure

Why is this important? EPS measures our rate was up 10 basis points at 25.9%. With USc103.1 success at generating surpluses and value weighted average numbers of shares at 910m, for our shareholders. this resulted in Benchmark earnings per share USc Aim: To achieve earnings growth for of 103.1 US cents. This was flat on the prior 2021 103.1 shareholders while balancing reinvestment year at actual exchange rates and up 4% at to secure future growth opportunities. constant currency. 2020 103.0 Analysis: Benchmark EBIT from ongoing 2019 98.0 activities was up 3% at constant exchange rates, driven by our organic revenue growth 20181 94.4 performance. Our Benchmark net finance costs 2017 88.4 decreased to US$121m, and Benchmark tax

1 Restated for IFRS 15. Experian plc Annual Report 2021 17 Strategic report See page 117 – Cumulative Benchmark operating Benchmark operating cash flow and cash flow conversion cash flow is a directors’ remuneration measure

Why is this important? Cash flow gives us the US$1,476m 106% capacity to operate, and reinvest. The efficiency with which we convert profits into cash flow is US$m % measured by cash flow conversion. 2021 1,476 106 Aim: To convert at least 90% of Benchmark EBIT into Benchmark operating cash flow. 2020 1,214 88 Analysis: Cash flow performance was strong 2019 1,270 97 this year with Benchmark operating cash flow 20181 1,196 96 of US$1,476m, up US$262m on last year. The increase is due to changing revenue mix, strong 2017 1,149 96 control and phasing of working capital, and

1 Restated for IFRS 15. deferred infrastructure investment.

See the Environmental, Social and Governance (ESG) section on pages 38 to 56 for Employee engagement further information on how we’ve been looking after and listening to employees this year

Why is this important? An engaged and period of adjustment and adaptation. We have On average across all pulse surveys, 75% of motivated workforce helps us to develop been dealing with the uniqueness of remote employees responded favourably to ‘I am exciting new propositions and find new working and sometimes unanticipated mental feeling physically and mentally well’ opportunities while appropriately managing health consequences such as loneliness and On average across all pulse surveys, 88% of risks. anxiety, as well as other added challenges such employees responded favourably to ‘I am able Aim: To ensure Experian is a great place to as having to home-school children. We have to be productive in my current work set up’. therefore focused very strongly on our work and that we can attract and retain the best We plan to continue this approach into FY22 as people. colleagues’ mental and physical well-being throughout the year. To stay in touch we have more frequent sampling and direct employee This year has been challenging for Analysis: conducted more frequent and flexible pulse feedback helps us to ensure we fully take everyone, including our 17,800 employees with surveys, rather than our traditional single account of our people’s needs and enables us the majority working remotely due to COVID-19 annual survey. Survey results show that: to make decisions in a timely manner. We will related office closures. For many, it has been a also conduct our more extensive annual survey in June 2021.

1 For further information please refer to the Sustainable Greenhouse gas emissions (000s CO2e tonnes) Business report at www.experianplc.com/sbreport Why is this important? It measures the carbon offset our Scope 1 and 2 emissions by 2025. 16.8 emissions we generate, as we have a FY21 is the first year for which we’ll offset a responsibility as a business to reduce our portion of our emissions, offsetting 20% of our carbon footprint and respond to the climate emissions with the end goal of reaching 100% 60 11.9 12 change emergency. in FY25. This year, as a result of lockdowns and 9.9 e) e) most of our staff working from home, we have 2 50 12.8 10 2 Aim: To reduce our carbon emissions with the 8.9 goal of becoming carbon neutral in our own seen a decrease in our Scope 1 emissions by 14.1 7.8 14.3 40 8 operations by 2030. 27% to 2.2 thousand tonnes of CO2e and Scope 34.2 2 emissions by 35% to 14.3 thousand tonnes of Analysis: To become carbon neutral, we need to 30 15.2 CO e. Equally we have seen a decrease in air 28.0 6 reduce our direct emissions and take further 2 25.6 travel emissions (Scope 3) by 98% to 0.3 22.1 action by becoming more energy efficient and 20 3.1 4 thousand tonnes of CO e. We continue to work switching to renewables where possible. Once 2

emissions (Tonnes CO emissions (Tonnes CO emissions (Tonnes on making effective long-term changes in our 2 2 10 14.3 2 we have reduced our footprint as far as CO CO business, to reduce our carbon footprint. For possible, remaining emissions should be offset. 4.4 more information on our approach and next 0 3.9 3.6 3.0 2.2 0 In 2020, we committed to gradually carbon 2017 2018 2019 2020 2021 steps to achieve this, see page 54. Scope 1 Scope 2 Scope 3 1O C 2e = CO2-equivalent. FY21, non-RF emission factors were used). Actual emissions CO2e emission per US$1m of revenue (tonnes) 2 Scope 1 covers direct emissions such as gas consumption from other Scope 3 emission categories are being calculated, CO e emission per full-time equivalent employee (tonnes) and diesel used in generators or company cars. Scope 2 estimated emissions are included in the People and ESG 2 (market-based) covers indirect emissions from the section on page 56.

generation of purchased electricity, steam, heating and 3 Carbon intensity: CO2e emission per US$1m of revenue. cooling calculated using supplier issued or residual emission 4O C 2e emission per full-time equivalent (FTE) employee. factors. Where supplier and residual emission factors are not FTE employees as at 31 March 2021. available, we use location-based emission factors. Scope 3 5 The 2017 calculation includes CCM which has been includes indirect emissions from our value chain. Our current reclassified as a discontinued operation. Scope 3 reporting only includes emissions from air travel 6 The 2018 intensity metric based on revenue was restated (using DEFRA conversion factors. FY21 air travel emissions following the adoption of IFRS 15. Metric reported in our 2018

were calculated using relevant RF emission factors. Prior to Annual Report: 10.8 tonnes of CO2e per US$m revenue.

See note 6 to the Group financial statements for definitions of these non-GAAP measures: organic revenue growth, Benchmark EBIT, Benchmark EBIT margin, ROCE, Benchmark earnings per share, and Benchmark operating cash flow and cash flow conversion. 18 Experian plc Strategic report

Market trends Understanding our key market trends

The COVID-19 pandemic has Changes in consumers’ Population and wealth catalysed many of the trends that digital behaviour have been shaping our markets for some time. People have rapidly Trend Trend adopted digital services and this in Economies have digitised at a time when The global population is set to continue personal finances have become much more growing, with an increase of two billion turn is transforming the way that stressed. Consumers want to save money. people expected in the next 30 years. businesses operate so that they may They also want to protect their data and they Emerging markets are becoming key drivers better serve their customers. To are often faced with bewildering levels of of economic growth over the medium to long operate effectively in the digital choice online. They expect digital interactions term. to be smooth, intuitive and fast, whether sphere, organisations need to invest making purchases or applying for credit. New Currently, there are around 1.7 billion adults in smooth digital journeys and trends are also emerging and, with a growing globally who are unbanked. Huge numbers of awareness of the value of their data, people in the developing world have no automate processes, as well as access to formal financial services, while in contend with higher levels of online consumers are increasingly willing to share data in exchange for discernible value. more developed countries, large segments of fraud. These trends have been on Businesses on the other hand have to work the population may have ’thin’ or no credit our radar for a number of years. harder than ever to find, serve and retain profiles. This can reduce people's access to customers in this hyper-connected digital credit and to mainstream finance because For many years we have invested in they may be ‘invisible’ to the industry. strategies to meet these needs and world. Our response this positions us well. That said, the Our response We have established direct relationships with We are developing new technologies to help COVID-19 pandemic has required us more than 100 million consumers globally. people gain access to financial services at fair to adapt, while also opening up new We are introducing new services that meet and affordable rates. Many products support opportunities for expansion. their changing demands, helping them the millions of credit invisibles. Experian Lift, manage their finances more efficiently – on our new service in the USA, draws on COVID-19 and counter-cyclical response any device, at any time, anywhere – and extensive data sources to enhance In the short term, we will continue to face placing them in control. predictions of creditworthiness. Our new macroeconomic pressures as well as lockdown Atlas platform has the potential to improve We provide our business clients with data and access to credit for one billion under-banked uncertainty in a number of our regions. analytical tools so they can understand who people in Asia Pacific. It combines technology However, our business benefits from they are interacting with, help them make with non-traditional datasets such as counter-cyclical drivers, segments which better and faster decisions about which telecommunications, rental or ecommerce prosper when economic conditions are services to offer, while also minimising the data to help lenders assess risk cost depressed. We also have businesses in the risk of fraud. effectively. This can help more people to get portfolio which are less susceptible to economic fairer access to credit. In the UK, our new Our Ascend Analytical Sandbox is an downturns. Consumer Services, Health and Credit Limits service enables consumers to advanced analytics environment which allows Mortgage are examples of business segments check the limit they are likely to be offered our clients to access deeper insights, data which grew this year and which contributed to before applying for a new credit card, without visualisations, and business intelligence. It our resilient performance. impacting their credit report. combines Experian credit data, the We also adapted some of our propositions to customer’s data, and other data sources such Experian Boost has helped over four million help our customers deal with the uncertainties as industry-specific feeds. As consumers people in the USA instantly improve their created by the pandemic. In total, we launched consent to data sharing to unlock value, we credit scores, adding positive data about 158 innovations during the year, many of which are adding new modules and datasets to the on-time payments of utility bills to their were directly linked to these needs. These product, enabling more powerful insights. financial profiles. In November 2020, we also introduced Experian Boost to the UK to help included propositions in areas such as fraud We constantly develop new propositions to people improve their credit scores. prevention and debt collections, as well as new take account of changing behaviours. In attributes and scores to help our customers Health, increasingly healthcare is shifting out In Brazil, we built a positive data bureau in make better lending decisions, including of the traditional hospital setting and into response to legislation in 2019 that means recovery scores, downturn triggers and settings that are more cost effective and positive payment histories (records of bills loss-forecasting capabilities. convenient for patients. We have introduced paid) can now be used in credit assessment. Strategic focus areas offers which co-ordinate digital care, while We have developed a range of new positive also helping to authenticate and identify data services which we have been launching 1 Make credit and lending simpler, patients before they embark on treatment. through the year, and currently have 96 banks faster and safer for consumers contributing data. We believe that of the 157 and businesses 1 2 3 5 million adults in Brazil, we can assist 137 million with positive data products, either by 2 Empower consumers to improve their financial lives enabling their access to credit they would not have had previously, or by allowing them to Help businesses verify identity access credit at reduced interest rates. 3 and combat fraud 2 4 5 4 Help organisations in specialised vertical markets harness data and analytics to make smarter decisions 5 Enable businesses to find, understand and connect with audiences Experian plc Annual Report 2021 19 Strategic report Proliferation of data Advances in automation A changing regulatory and technology environment

Trend Trend Trend As the world moves increasingly online, the Businesses in all industries are looking to AI Regulators are becoming increasingly more amount of data available is growing at an and machine learning to automate processes active in protecting consumer data and extraordinary pace. Of all current data, 90% in order to operate more efficiently, and privacy rights, and there are now significant has been created in the last two years, and 127 secure productivity gains. New technologies financial and reputational consequences for new devices connect to the internet every are revolutionising industries, and businesses non-compliance. Cybercrime is also second. As well as the increased amount are investing to remain competitive, with over increasing, and there is much greater scrutiny available, it is becoming cheaper for 95% of Fortune 1000 organisations stating of data protection. businesses to store, manage and analyse data. they are investing in big data and AI. As data custodians, businesses have a However, these businesses need to Automation can personalise customer responsibility to safeguard consumer privacy. understand the many data sources available to experiences, make online transactions We believe we can help our clients and them in order to improve decision-making. simpler, automate logistics and optimise consumers meet their responsibilities in this New data sources, made available through business decisions, allowing companies to more demanding environment. open banking in the UK and USA, and positive generate significant efficiencies and redeploy Regulators are opening up banking and other data in Brazil, are giving organisations access their staff to do jobs which require a higher data-rich industries, encouraging consumers to rich, up-to-date information. However, to level of human input. to ensure they get the best possible deal. optimise opportunities in these challenging Our response times, businesses need to embrace advanced Our response We are transforming our technology stack to analytics tools, capable of connecting disparate We work with regulators to ensure we comply a modern, resilient, scalable and secure datasets and making the information more fully with all new regulations, and engage in cloud-based architecture to accelerate usable. public debate to ensure policy-makers take product delivery to clients. Investment in the into account our views and those of our Our response best technology is critical to the way we industry. We develop new services to help our We develop solutions to offer sophisticated ingest, store and secure data, as well as to the clients remain compliant with regulations that platforms to help clients take advantage of way we develop and deliver our products. It is affect them. data proliferation. For example, Ascend one of the critical factors in how we can Intelligence Services uses AI and machine maintain and extend competitive advantage. Protecting consumer privacy and information learning to support continuous improvement Technology enables us to link Experian and security is extremely important to us. We of strategic models for clients. This frees up third-party data assets to create innovative have programmes that evaluate every data-scientist time from model building and products. product and service to ensure we strike the monitoring activities, it means data can be right balance between consumers’ privacy In addition, we use technology to enhance our integrated into models faster, and produces an expectations and the economic benefit to both own processes, which has improved endpoint that can be utilised by PowerCurve consumers and clients. Furthermore, we are productivity. It has allowed us to reduce our and Experian One. It can also offer real-time channelling investment into our multi-layered conventional cost base and release funds for market insights, benchmarking and health and extensive information security investment in new opportunities, such as monitoring. programme to manage and protect against further innovation. For example, we continue cyber security risks, by continually upgrading We are evolving our analytics portfolio in to invest in our RPA (Robotic Process our security infrastructure in an ever- response to client demand for a shift towards Automation) capability and have automated changing environment. cloud-based products. We are investing in a 377 of our key processes, equating to more roadmap of innovation to evolve from a largely than 350 years of manual activity time saved Accurate data is fundamental to our on-premise software business towards a since project inception. reputation and business success. We cloud-first, digital-first, API-enabled and constantly strive to increase the accuracy of scalable platform business. This 1 4 5 our data in a competitive market, to ensure transformation is well underway and began customers can have confidence in the with our investments to unify and standardise services we provide. our product suites, easing the process of scaling these globally. 95% 2 3 4 For example, PowerCurve migration to the of Fortune 1000 organisations state they are cloud provides an adaptable platform that investing in big data and AI enables decisions to be designed to client needs and combines rich data and advanced analytics to drive decisions at scale. The modular design offers agility, and our continual augmentation of machine learning into the platform can bring greater connectivity to the businesses we serve, with frictionless experiences for their consumers. 2 3 4 5 90% 127 of all data has been new devices connect created in the last to the internet every two years second 20 Experian plc Strategic report

Our business model We play a vital role in connecting people and business through data and technology

We believe data has the power to transform lives and create a better tomorrow. We combine our innovative technology with data to drive economic growth, supporting jobs and prosperity.

What we do

With our expertise in data and technology we are ideally placed to link people and organisations, helping them interact more easily.

We help people Organisations can better understand their financial position deliver services to consumers with greater speed and efficiency improve access to financial services make fairer, better-informed and more responsible decisions enjoy a quick and seamless online service become more efficient and reduce costs 17,800 Four USA, UK 44 Two employees globally reporting regions: and Brazil countries where we have main segments: – North America offices – Business-to-Business are our largest and longest- – Consumer Services – Latin America established markets – UK and Ireland – EMEA/Asia Pacific

See page 21 for more information on Business-to-Business and Consumer Services.

Providing essential services for people and organisations We help create opportunities for people to improve their lives and for organisations to make faster, smarter decisions. We do this by transforming data into information, and by deploying advanced technologies, platforms and analytics.

Big data analytics Decisioning Ascend Technology Platform: data Manage and automate large on demand and sophisticated volumes of decisions and processes, analysis tools. on-premise or in the cloud. DataLabs: advanced data analysis, PowerCurve: customer decision and research and development by management for connecting analysis data scientists. and operations. Empowering people to better CrossCore: fraud prevention. understand their financial position, take Core data platforms control of their finances and manage Financial education Collect, sort and aggregate their financial health Access to credit reports and scores, data from tens of thousands identity monitoring and protection of traditional and alternative as well as comprehensive awareness sources and transform it to provide and education programmes. a range of information services. Free consumer membership base of 110m people.

Open data platforms Product comparison Open Banking: facilitating Credit Match/Credit Matcher: consumer-permissioned sharing of Helping business to make faster, consumers can understand which data from their bank account with smarter and better decisions credit card, personal loan, mortgage other parties. or automotive insurance products they will most likely qualify for and benefit from using.

Consumer-contributed data Online debt negotiation Consumers adding their own data With Limpa Nome in Brazil to their credit files. 6.7m consumers consumers see all their own past-due connected with Experian Boost in the debts in one place and negotiate more USA and over 5m consumers with achievable repayment plans with Serasa Score Turbo in Brazil. Using data to help the most lenders. vulnerable in society and supporting economic growth Experian plc Annual Report 2021 21 Strategic report A detailed look at what our business segments do and how they generate revenue

Business-to-Business Consumer Services Data Decisioning What we do What we do What we do We provide businesses with information to help We draw on the depth and breadth of our credit We provide credit education and identity them to understand and develop relationships information databases and on other information, monitoring services directly to millions of with their customers, to build their businesses including clients’ own data, to develop predictive consumers in the USA, Brazil, UK, South Africa, and to manage the risks inside their tools, sophisticated software and platforms. Peru, Colombia and India. Our services for organisations. We build and manage large and These all help businesses and organisations consumers include free access to their comprehensive databases containing the credit manage and automate large volumes of decisions Experian credit report and score, and useful activity and repayment histories of millions of and processes. Our services help our clients online educational tools. In the USA and UK we consumers and businesses. We collect, sort and improve the consistency and quality of their enable people to contribute their own data to aggregate data from tens of thousands of business decisions, in areas including credit their file, for example utility, mobile payments sources and transform it to provide a range of risk, fraud prevention, identity management, and streaming services, to help them improve information services. Organisations analyse and customer service and engagement, account their credit score. We offer comparison services use this information to make decisions about processing, and account management. that show consumers a choice of relevant and lending and the terms on which to lend. available credit card, personal loan, mortgage, Link to our strategic focus areas automotive insurance and other deals. In Brazil, Link to our strategic focus areas See page 28 and 32 1 3 our online recovery portal, Limpa Nome, lets See page 28 and 34 1 4 Key customers consumers see all their own past-due debts in Key customers Financial services, retail, US healthcare, one place, and negotiate more achievable Banks, automotive dealers, retailers and telecommunications, utilities, insurance and repayment plans with lenders. FinTech telecommunication companies Link to our strategic focus areas See page 30 2 How we add value How we add value We aggregate data from many sources and Assessments of creditworthiness, Key customers turn it into information that can be used for suitability and affordability of loans support Consumers, lenders and insurance providers many different purposes responsible lending We help provide lenders with a Faster, frictionless and better-informed How we add value comprehensive view of a consumer’s decisions help improve customer Support consumers in taking control of their financial situation experience credit, improving their financial well-being Information is used to support impartial Relevant insights into new and existing and achieving their financial goals credit decisions, broaden access to credit customers support more effective Provide immediate tangible results through and promote fair and responsible lending management and better engagement with credit score improvement and We also provide marketing data relevant to customers renegotiation of debts consumer lifestyles which helps businesses Authentication of customer identity helps Support eligibility for, and improved access understand their customers better and prevent identity fraud and other crime to, credit offers and other services serve them with tailored products Improve navigation of major financial Revenue model decisions, such as buying a home Revenue model Software and system sales: consultancy and Improve detection of, and resilience to, Primarily transactional with some implementation fees; recurring licence fees; identity theft and fraud contribution from licence fees and transactional charges Credit scores sold on a transactional, Revenue model Market position volume-tiered basis Monthly subscription and one-off transaction Number one or number two in our key Analytics: a mix of consultancy and fees markets professional fees, as well as transactional Referral fees for credit products Main competitors: Equifax, TransUnion, revenues White-label partnerships Dun & Bradstreet, BoaVista, LiveRamp and Epsilon Market position Market position Market-leading provider of business solutions We are the market leader in Brazil and one of in key markets except for the USA the market leaders in the USA and the UK Main competitors: FICO, IBM, SAS and Main competitors: Intuit, NerdWallet, Lending Change Healthcare Tree, ClearScore, Equifax and TransUnion

Data revenue¹ (US$m) Decisioning revenue¹ (US$m) Consumer Services revenue¹ (US$m) A A A A. North America 1,761 D A. North America 694 A. North America 1,075 C D B. Latin America 457 C B. Latin America 92 B. Latin America 76 B C. UK and Ireland 361 C. UK and Ireland 220 C. UK and Ireland 156 D. EMEA/Asia Pacific 287 D. EMEA/Asia Pacific 178 C Total 1,307 Total 2,866 B Total 1,184 B 1 Revenue from ongoing activities. 22 Experian plc Strategic report

Our business model continued

What makes us different?

We invest in a number of key areas to sustain and grow our competitive lead.

A culture of innovation Innovation has always been at the heart of our business and we employ some of the world’s leading data scientists and software engineers. We have a long tradition of introducing innovative new products and we invest to maintain high standards of scientific excellence. It’s an important differentiator for our business as well as being a significant growth driver.

We have introduced a formal process to embed a culture and The Athena process framework of innovation across Experian. We call it ‘Athena’. Athena helps us to innovate and bring new products and services to market more successfully. Monitor Evaluate Identify Invest in the market trends client needs opportunities most promising initiatives

Our extensive data assets Data is the foundation of our business. Worldwide we hold and manage the credit history and repayment data of 1.3 billion people and 166 million businesses. We focus on ensuring we Increase breadth continue to have the best datasets available, alongside the best Traditional New and depth of data products to help our clients make sense of their data. credit data datasets More predictive Broader applications

Consumers are at the heart of what we do We aim to be the consumers’ bureau. We have built our business on clear commitments.

Safeguarding data security: we operate a multi-faceted approach to ensure that data is held securely. This approach focuses on prevention, detection and mitigation. Improving data accuracy: we constantly strive to increase the 110 m accuracy of our data. We use data from reputable sources, we Direct relationship with measure accuracy continuously, and we have improvement consumers across the programmes and processes that quickly correct inaccurate data. USA, Brazil and the UK Protecting data privacy: we have programmes to evaluate every product and service to ensure we strike the right balance between consumers’ privacy expectations and the economic benefit to both consumers and clients. Ensuring data transparency: we offer consumers the ability to review the data that we hold and, where appropriate, to opt out Robust security of further processing or sharing of data for particular uses. 23 controls based on We have relationships with millions of consumers. We empower consumer and 12 business information ISO people to use data to support their financial well-being. We have bureaux globally 27001 pioneered new ways to give people greater control over their data and give them the confidence to flourish financially.

See page 43 for more detail on these four areas. Experian plc Annual Report 2021 23 Strategic report

Breadth and combination of capabilities Our greatest strength comes from the combination of data with our advanced analytics and decisioning tools. This approach means we can often create highly differentiated services which are unique to Data & Consumer Experian. We work together and we proactively seek these Analytics engagement opportunities across our organisation.

Decisioning

Our global footprint and employees We provide our services to both multi-national and local clients. We can develop new products in one market and transfer them into others in a systematic and replicable way, helping us to export our most successful 3,300 platforms and formats. Our 17,800 skilled employees work in 44 global UK and Ireland operations across six continents. 44 7,100 countries in which we North America operate 4,200 EMEA/Asia Pacific 3,200 Latin America

Investing sustainably Robust financial performance and reinvestment We are committed to incorporating ESG factors into our investment We have a disciplined approach to capital allocation which balances decisions. We choose to invest in products and services with the clear investment in the business and returns to shareholders in support of purpose of generating positive social impacts, alongside financial our strategy to deliver consistent growth. returns. Our core products and Social Innovation products help improve access to credit to support financial inclusion, improve financial literacy, and prevent fraud and identity theft. We are also investing to lessen our environmental impact, reducing our carbon emissions through investing Organic investment Inorganic investment in more efficient technology, reducing our energy requirements, and in selected projects through acquisitions making more use of renewable energy. This supports our commitment to be carbon neutral by 2030 in our own operations. Underlying our commitment to sustainable investing is our investment in data privacy, security, accuracy and transparency, and our commitment to working balanced with integrity. with

2030 Shareholder returns carbon neutral Dividend payments commitment Share repurchase programme when appropriate See page 38 for more detail 24 Experian plc Strategic report

Our business model continued

Value creation for our stakeholders

Our clients and consumers

Why How Value Clients’ needs include: We work with our clients to understand We help millions of people and thousands better services for customers – faster their challenges and develop new of businesses use their data more 3.5bn and frictionless products that help them solve problems. effectively – seizing new opportunities credit decisions We welcome their constructive feedback and taking greater control. meeting regulatory requirements supported facilitating about our products and services, either We help them by turning data from many billions of loans Clients’ and consumers’ needs include: informally or through our yearly Net sources into useful information they can high-quality and accurate data Promoter Score surveys. use. We create powerful analytics and 3.2bn data security We engage with consumers via our free software, so they can make microloans enabled platforms, providing them with financial more-informed decisions. consumer privacy education, useful tools, free Experian m access to credit and other services credit reports online and various other 11.6 conversations with prevention of fraud and identity theft products. Consumers can reach us through our call centres and we respond consumers to their concerns on a range of issues, from access to credit, to amending data 390k on their credit file, to identity theft. For fraud victims supported inaccurate data on credit files we have Prevented fraud processes in place for consumers to of at least review their data, raise a query and have corrections made if needed. US$10bn Our communities

Why How Value Communities need: We draw on all our resources – including We help people access credit and other business success, employment and our people, information and skills – to financial services, that they can use to 61m job creation support communities worldwide in take control of their financial people reached through innovative and effective ways. These circumstances and improve their lives. Social Innovation projects access to public services include the development of Social We help businesses prosper, and to long-term asset creation in Innovation products, employee enhance their potential as local US$ m communities 12 volunteering and partnerships and employers. community investment inclusion in mainstream financial support for community groups and services and products charities. a healthy environment in which to live 21,000 hours volunteering 58% reduction in carbon Our people emissions

Why How Value People need: We listen to our people’s views, support a Our work carries great responsibility, Employee reported to feel valued for their contribution positive empowering culture and do all and how we work is as important as results from pulse we can to make Experian a great place to what we do. surveys: to feel supported, especially while work. working remotely We provide employees with opportunities % We encourage employees to use their for growth through training, giving them a 75 to feel they make a difference to skills to undertake interesting work. We sense of purpose – an integral part of our favourable response to society ‘I am feeling physically give them the right tools to work organisational culture that has a positive and mentally well’ to contribute to our engaging, positive effectively, learn new skills and develop impact globally. empowering culture their careers. training and learning We celebrate great performance and 88% career progression ensure employees feel nurtured and positive response to ‘I am able to be job security supported throughout their careers with Experian. productive in my current work set up’ Experian plc Annual Report 2021 25 Strategic report

Our suppliers

Why How Value Suppliers want: We create close and collaborative Many of our data contributors are also long-term, collaborative relationships relationships with key suppliers to ensure our clients. They supply us with data 31 streamlined processes, performance, through a give-to-get model. key suppliers in our business opportunities dedicated SRM1 segmentation and qualification. Our ability to combine, clean, sort and to mitigate market and financial risks This helps us uncover and realise new aggregate data from thousands of data to meet regulatory requirements value, increase savings and reduce costs contributors creates a more complete k and risk of failure. picture of consumer or business >11 data contributors These close relationships also help us interactions across markets. in the USA ensure we meet our compliance obligations.

1 Supplier Relationship Management

Governments

Why How Value Governments are concerned about: We develop constructive relationships We enable the transparent flow of data generating prosperity with policy-makers and regulators. Our that is essential to the functioning of 1.3bn senior executives meet with legislators modern economies and the financial managing economic cycles consumers and regularly to ensure they understand the ecosystem. 166m businesses – supporting their stakeholders’ credit history and opportunities, value and challenges High-quality data reduces the risk to financial well-being repayment records associated with our business. lenders of extending credit, ensures fair compliance with regulations We respond to, and engage with, and responsible lending, increases managing issues that affect government during public consultations confidence to lend, as well as the ability consumers and businesses on issues that are relevant to our to assess affordability and meet mitigating impacts and reversing business. compliance obligations. This benefits the climate change wider economy by improving access to credit, improving market competition, increasing credit diversification and reducing the cost of credit.

Our shareholders

Why How Value Shareholders want to: We build relationships with our We aim to create long-term shareholder understand Experian’s strategic shareholders through our investor value, by investing to grow our position in 4% direction, financial performance, and relations programme. our chosen markets, while ensuring we Organic revenue growth the sustainability of the business In our quarterly financial updates we meet our wider sustainability commitments. analyse structural market trends inform our shareholders about Experian’s % financial and strategic progress. We hold 15.0 generate sustainable investment Return on capital face-to-face meetings and run dedicated returns through share price employed teach-ins to educate them about our appreciation, dividends or share business and ESG commitments. buybacks Regular investor surveys provide us with USc understand management and 103.1 feedback and enable us to take corrective Benchmark EPS incentive structures action if necessary. ensure they are investing in businesses that are committed to 2030 environmental progress, societal carbon neutral benefit and which have strong commitment governance. 26 Experian plc Strategic report

Our strategic focus areas

Accelerating innovation to seize new opportunities and help customers achieve their ambitions

Our strategy is based on our fundamental purpose: to create a better tomorrow for consumers and organisations. It has been a year of challenge, with the COVID-19 pandemic affecting billions of people around the world. In response, our purpose has guided our approach, as we have played an essential role in helping those affected. Our employees have risen to the challenge of providing practical assistance to help consumers, businesses and communities. We have also worked with regulators, lawmakers and governments in our key markets to ensure that financial relief reaches, and will continue to reach, the people and businesses that need it most. Even during these times, we have not let up on strategic investment. We have invested in new innovations, strengthened our competitive position and seized new market opportunities. In fact, the pandemic has accelerated previously existing trends. The new product investments we have made over the last few years have positioned us well to take advantage of these trends, as have the investments we have made in organisational capacity and technology infrastructure. Combined, this has meant we can bring the right products to market quickly. At the heart of our strategy are the key market trends driving long-term changes in our customer base. Their needs and priorities are continually evolving. Our strategic focus areas define the priority customer sets that we serve, the key challenges they are grappling with, and how we can be part of the solution. We consult customers to better understand these needs so that we can develop the best propositions to address them. Experian plc Annual Report 2021 27 Strategic report

1 Make credit and lending simpler, faster and safer for consumers and businesses

See page 28 5 2 Enable businesses Empower to find, understand consumers to improve and connect their financial lives with audiences See page 36 Our See page 30 customers

4 3 Help organisations Help businesses in specialised vertical verify identity and markets harness data and combat fraud analytics to make smarter decisions

See page 34 See page 32 28 Experian plc Strategic report

Our strategic focus areas continued 1 Make credit and lending simpler, faster and safer for

Market consumers and Customer trends businesses needs C hanges in consumers’ R educed friction digital behaviour in loan acquisition A dvancements in and underwriting automation and technology A bility to make smarter lending decisions O ptimal management of credit portfolios

Who? Why? How? Financial services R isk of high loss for our clients from T hrough industry-leading accuracy – Credit cards poor lending decisions of credit and alternative data – Consumer lenders T he primary role of these companies Consumer-consented data focus – Mortgage lenders is lending D ata linkage capabilities – Auto lenders L ending opportunities are growing Advanced analytics – Commercial lenders and trade credit across digital channels – Online lenders Ma rket-leading platforms E xperian is a leader in this space Strong and long-standing relationships with clients

When consumers apply for credit What we did this year and defaults). We have launched a range of they have certain needs and In EMEA, we have expanded our presence new positive data services, that we believe through strategic acquisitions. In June, we has the capability to benefit 137m people, expectations. They would like the 87% of Brazil’s adult population. To date, we process to be easy and increasingly completed the acquisition of a majority stake in Arvato Financial Solutions’ Risk have 96 banks contributing data on 97m they want to apply through a digital Management division, allowing us to rapidly consumers. device. In other words, they seek a expand our range of risk, fraud and identity Based on our success in North America, we seamless online experience. At the management services across Germany, have been rolling out our Big Data analytics same time lenders need to make Austria and Switzerland. In Spain, we and insights platform, Ascend, across our decisions rapidly on who to lend to acquired Axesor, whose experience in global markets. We are continuing to launch business information complements our new products on the cloud-based platform, and how much. We sit in-between. previously existing consumer information including Ascend Intelligence Services, which Our data assets and advanced business in the region. This means we are harnesses the power of AI and machine analytics mean the time taken to now able to offer our clients the only learning to support model management, make decisions is greatly reduced integrated proposition for consumer development and monitoring. and consumers can get responses information, business information and We initiated the implementation of our plans quickly. In this way, friction in the decision analysis in the Spanish market. to improve the performance of the UK and Ireland business, enhancing customer whole lending process is reduced We are at the forefront of open data technology, and have introduced new experience, and aiming to return the and everyone benefits from a services such as affordability checking tools, business to profitable growth. This has better experience. personal finance management and involved establishing and starting out on recommendation engines. To date, we have the pathway to simplify our technology and launched open data categorisation services application estate, as well as restructuring in eight countries. We continue to focus on the organisation to focus on delivering consumer-contributed data and open data enhanced outcomes for our clients. In to augment our capabilities in both existing addition, we have implemented growth and new vertical markets. initiatives to bring scale to some geographies, In Brazil, the introduction of new legislation in with restructuring actions to gain greater 2019, supported by Serasa Experian, means operational efficiency and focus our activity positive payment histories (records of bills on a smaller number of end markets in paid) can now be used in credit assessment, EMEA and Asia Pacific. as well as negative data (missed payments Experian plc Annual Report 2021 29 Strategic report Positive data is generating new opportunities in Brazil. Previously lenders had to wait until a loan defaulted to find out if a customer was able to pay back a loan. Now with positive data they can assess a customer’s capacity Transforming to repay a loan and over time track trends that might lives by indicate repayment distress or vulnerability to default, and take the appropriate action.

To help them do this, we have been launching new positive data scores, attributes and alerts, such as for estimated income, affordability and on-time payments. We’ve added machine learning into the statistical modelling techniques for the data analysis and score construction, generating as well as new sources of data like utility payments. And our data is refreshed frequently allowing for a rapid response to changing credit profiles. Lenders can increase credit thresholds and offer customers new opportunities better fitting products based on their circumstances. It’s not just large companies that will benefit from this but small and medium-sized businesses as well. Having access to this rich base of with positive information and analysis will help provide them with a new vision of their customer base, and help them improve results at a time when it is essential to seek new business opportunities and rapidly respond data to changes in the market. So far, 105 million Brazilians have joined the positive data registry and 770 million transactions have been registered. With positive data we expect to see that 23 million people, 14% of the adult population, with thin files will gain better access to credit, that total credit : GDP will increase from 47% to 67% and more than US$240bn of new credit will become available in the Brazilian economy.

Future plans We will continue to invest to develop and maintain the superiority of our data, analytics and decisioning products, as well as opening up new opportunities, for example in consumer-consented data. These The wealth of new information investments allow us to preserve and on customers' payment habits increase our existing revenue streams, while also expanding the markets we address. 14% means lenders can gain deeper We are focused on better aligning our global of the adult insights and a greater degree platforms to make it easier for clients to use population in Brazil, of accuracy in their forecasts, our advanced capabilities. We expect strong with thin files will gain better access increasing trust and leading growth as organisations further embrace to credit to wider access to credit analytics and automation, and will bring our for consumers. capabilities together in increasingly sophisticated and integrated propositions to Rodrigo Sanchez address key business needs. Through scaling Vice President, Credit Services, our solutions, we can bring our products to Serasa Experian new markets more quickly. New features of our global platforms such as Ascend, PowerCurve and Experian One, as well as our open data products, are being rolled out globally to give a wider geographical reach. We will remain market leaders for major market shifts, such as adoption of open data globally, positive data in Brazil, and identity services. For shifts such as positive data, we will continue expand our solutions to serve as wide a market as possible. 30 Experian plc Strategic report

Our strategic focus areas continued 2 Empower consumers to improve their

Market financial lives Customer trends needs

C hanges in consumers’ G aining access to credit digital behaviour S afeguarding identity P opulation growth Saving money worldwide Negotiating debt Proliferation of data Improving financial C hanging regulatory knowledge environment

Who? Why? How? Consumers Consumers face significant financial Consumer-consented data Small business owners and emotional costs to maintain Comprehensive financial wellness Consumer lenders financial wellness, protect themselves Best-in-class website and mobile and navigate the healthcare system experiences U rgency increases as life events occur S trong partnership ecosystem Increasing use of technology A ccelerated marketing to grow user D irect relationships are critical for base consumer-consented data

Our vision is to become consumers’ What we did this year Future plans first choice for managing their In November, we launched Experian Boost We will continue to build direct relationships financial lives. Our solutions can help in the UK, enabling UK consumers to add with consumers and our ambition is to reach consumers gain access to credit at on-time payments to their credit files for the millions more. first time to instantly improve their credit We will also continue to strengthen the affordable rates and to manage scores. Boost is also stimulating activity for their financial lives. We have built propositions we have built to date in credit credit comparison services and generating education, identity protection and credit relationships with 110 million referral fees as consumers often boost their comparison. score when looking to apply for credit. In the consumers globally, including over We intend to expand the range of services USA, we have increased the types of 33% of the adult Brazilian population. we offer, adding new capabilities in segments payment Experian Boost takes into account. such as Insurance and Health. Consumers can now add payments they make to streaming services such as Netflix, We will evaluate the potential to introduce Hulu and others to help boost their credit services for consumers in all the markets scores. in which we operate credit bureaux. Similarly, in Brazil we have established an We will continue to invest in propositions ecosystem of services which include an which help those who are currently in-app digital wallet and debt payment tool unbanked to gain access to affordable alongside Serasa Score Turbo. The credit and wider financial services. ecosystem also includes a subscription- based offer, Serasa Premium, that provides enhanced benefits. 31

Transforming Strategic report lives by

helping Brazilians

Winner of the 2020 to resolve their Experian Si Ramo Award for Commercial debts Impact

In Brazil 63 million people are included on the negative data registry, with an average of three debts per person. We have a big social role to fulfil Approximately 45 million adults have no bank account, as very often we are the first they may be unemployed or work in low income roles. point of contact for the unbanked They are excluded from mainstream credit, such as for or people who need help to credit cards or car loans, because they resolve their credit obligations. are so-called ‘thin files’, meaning there is insufficient With Score Turbo we wanted to information on their credit files for traditional lenders find a new way to educate people, to reliably make credit decisions. to help them keep their accounts up to date and improve financial Many people also have debt obligations which are more than five years access. old. These are not included in the negative data registry for regulatory reasons. This leads people to think, falsely, that their debts have been Carina Herzmann expunged or forgiven, but in reality these older obligations are still taken Product Manager, Score Turbo, into consideration by lenders. Serasa Experian A dedicated team at Serasa Experian spent six months developing the free Score Turbo experience, which is designed to help people to get on top of their debt payments, improve their credit score and enhance prospects for accessing credit. People get rewarded for paying their bills. They can connect to Serasa Limpa Nome (our online debt resolution marketplace), activate their positive data registration, and we offer them the opportunity to ‘Turbo’ their score by making payments towards older Scan the QR codes debt obligations. They can also keep current credit repayments up to date for further examples before they fall overdue. The offer was launched in September 2020. So far, people have on average received a 22-point increase in their score and more than 69m points have been distributed overall. This is not all, as people can improve Serasa Score Turbo their eligibility for more suitable loans. For the unbanked, it helps them to Speed up your credit establish a credit history and can be a path towards accessing score on the fly! mainstream credit.

Limpa Nome Supporting Brazilian consumers to repay their debts 32 Experian plc Strategic report

Our strategic focus areas continued 3 Help businesses verify identity and combat fraud

Market Customer trends needs

C hanges in consumers’ H elp with identity digital behaviour verification and Proliferation of data detection and C hanging regulatory prevention of fraud environment Streamlined authentication of legitimate partners

Who? Why? How? Financial services H igh proportion of credit card and loan L everaging unique consumer and Retail charge-offs are from identity fraud commercial data assets Travel and leisure G rowing regulatory costs Advanced analytics and machine P ublic sector Increasing opportunity from growing learning models Social media use of digital channels M odern technological infrastructure Health F ragmented competitors beginning Tokenised identity – Providers to consolidate E xtensive partner ecosystem – Payers – Pharmacy

People and businesses are What we did this year Future plans transacting more online and in the In May, we launched Sure Profile in the USA, In our 2020 Global Identity and Fraud Report, digital sphere. Fraudsters are taking aimed at combatting the growth of synthetic 95% of businesses said they felt confident advantage of this and so businesses identity fraud which is expected to contribute they can identify their customers. Yet more to US$48 billion in annual online payment than half of consumers don't feel recognised, are increasingly aware of the need fraud losses by 2023. This type of fraud and 88% say their perception of a business to protect themselves from fraud. occurs when the perpetrator, instead of is improved when that business invests in We provide services which help stealing an identity, blends information security. This shows the progress that needs organisations to identify and together to create fictitious identities used to to be made in bridging the gap between authenticate the counterparties they obtain and build credit history. Sure Profile business and consumer perception of validates consumer identities and detects customer verification. In FY22, we expect engage with to ensure transactions profiles that have an increased risk of to continue our progress in helping are legitimate. We also help synthetic identity fraud. businesses bridge this gap. organisations to detect and prevent In North America, the unemployment rate We will continue to scale the adoption of fraudulent activity. has surged as a result of COVID-19, which CrossCore, our fraud prevention platform. has in turn led to a spike in fraudulent CrossCore combines advanced analytics, unemployment claims. Experian’s Precise ID rich data assets, identity insights and solution is helping prevent and detect fraud-prevention capabilities. It enables improper and fraudulent unemployment businesses to connect any new or existing insurance payments, through our exclusive tools and systems in one place. These can be partnership with the Unemployment fraud detection applications from Experian, Insurance Integrity Center’s centralised our partners, or the client’s own applications. Identity Verification capability. We will continue to add market-leading solutions to this platform, so that businesses can adjust their fraud-prevention strategies to cope with the evolving threat landscape. 33

Transforming Strategic report lives by

protecting

Upper-right quadrant businesses on the Juniper Research 2020 ‘Digital Identity’ from automated leader board attacks The COVID-19 pandemic has driven a rapid shift from face-to-face to online transactions. This has resulted in Identity risk fraud has evolved. fraudsters escalating their automated targetting of online It is now more automated, more channels, with fraud attacks such as account takeover scalable and more sophisticated, 64% higher than the year before. with fraudsters increasing both the variety and volume of their attacks. Account takeover (ATO) fraud is a blend of old and new-style fraud. It Businesses need to respond just as occurs when a fraudster gains control over an account that does not belong to them, changes information such as login credentials, passwords swiftly with more robust security or personal information, and then makes unauthorised transactions in and identity checking strategies, that account. while still ensuring a great The rise of ATOs has come about in part due to the increased capabilities customer experience. of bots that run automated tasks, constantly barraging and testing Eric Haller security systems. They repetitively try to infiltrate accounts. Over 40% of Executive Vice President and General online login attempts last year came from attackers. And they are proving Manager of Identity and Fraud, Experian successful. In 2020, ATOs accounted for 54% of all fraud attacks, up from 34% in 2019. We want to help businesses to respond swiftly to these threats. That’s why we updated CrossCore, our integrated digital identity and fraud risk platform. It can flexibly scale up and down, handling the large volumes Scan the QR codes and speeds of the recent upsurge in online transactions with ease. for further examples And to determine that the fraudster, not the customer, is the one logging into an account requires a layered approach, beyond passwords and two-factor authentication. Our capabilities in device recognition, behavioural biometrics, machine learning and risk-based authentication can all help businesses reduce their reliance on manual checking, CrossCore usernames and passwords, and block fraudulent transactions. Brings together all the data and services you Businesses can respond to ATO threats quickly and automatically, and at need into a single view the same time keep giving their customers a seamless online experience, Precise ID via one platform one where legitimate transactions aren’t turned away. Evolved identity verification and fraud prevention

Anti-Money Laundering (AML) and Know Your Customer (KYC) checks to protect and improve customer journey 34 Experian plc Strategic report

Our strategic focus areas continued 4 Help organisations in specialised vertical markets harness data

Market and analytics to Customer trends make smarter needs C hanges in consumers’ R educed complexity digital behaviour and increased Proliferation of data decisions transparency A dvancements in Improved ability to automation and technology leverage data and C hanging regulatory analytics within environment workflows Reduced operational costs

Who? Why? How? Healthcare L arge or growing areas where U tilising Experian customer Insurance high-cost decisions currently intersect commercial and vehicle data Automotive with lack of transparency Advanced analytics – Dealers O pportunities to build new data assets Platforms and advanced programming – Lenders in many areas interface distribution methods – Manufacturers R elationship sales forces

The propositions we develop are What we did this year Future plans often relevant to a wide range of We continue to scale our offerings in the The health industry is experiencing clients and can be adopted across health sector, reacting to changing trends significant change, with COVID-19 having a a range of market segments. Many within the industry such as the shift towards massive impact on how care is provided and 'value-based care' and the demand from managed, and also on patient expectations. of these vertical markets are only consumers for a better patient experience. We see our expertise in patient care just starting to realise the benefits We have a comprehensive set of propositions co-ordination, identity, authentication, our solutions can bring and are ripe to help healthcare providers with revenue payments, and collections as a significant for transformation. We take a cycle management, and an extensive and growth opportunity. Beyond that, we also targeted approach to this by focusing expanding client base using these solutions. see consumer opportunities within Health. Increased digitisation and expectations of the Across verticals and regions, we are aiming on certain attractive vertical modern consumer around their healthcare opportunities. to complete our transition to a fully experience have driven growth in our cloud-enabled business, broadening scheduling, patient engagement and decisioning access through Experian One. payment solutions, and we have also We will improve our position in key growth pursued opportunities to expand in the verticals. For example, we will build on our identity management space. lead in Automotive, utilising Experian We started to establish a presence in the solutions in data decisioning and marketing, automotive segment in Brazil through Serasa to help a range of industry participants make Auto, our auto loans contract registration better decisions. solution. We are expanding Serasa Auto’s geographical reach within Brazil, helping clients comply with vehicle financing regulations within their state. 35

Transforming Strategic report lives by

putting patients in control

More control and more convenience. That’s what people want from their healthcare experience. Nearly eight in Online patient scheduling has ten people in the USA want to be able to schedule their been a game changer in the USA, own appointments, as well as complete their registration not only recently during the and pay bills, at any time of day or night. height of the pandemic, but also during the vaccine roll-out. We’re Just like ordering groceries or online banking, they want the same level very proud to have helped book of flexibility and accessibility when managing their healthcare. 100,000 vaccine appointments Not only does it put the patient in the driver’s seat, but it helps reduce across nine clients since no shows, it’s easier for patients to adhere to care plans, and has helped minimise face-to-face contact while COVID-19 remains a concern, December 2020, with an average keeping staff and patients safer. time from booking until first appointment of just 4.7 days. For health providers it means they can attract and retain more patients by quickly verifying legitimate patients, reducing fraud and denial rate for Jennifer Schulz eligible patients, as well as providing simple and clear pricing information, Group President, Health, helping to increase patient trust and payment collection efficiency. Automotive, Targeting and Data Quality, Experian Now, as the USA pushes forward with its COVID-19 vaccination drive, the challenge for health providers has turned to administering vaccines as efficiently and safely as possible. Online patient scheduling allows providers to: Push booking links directly to patients, and designate specific day To help improve the patient and time slots for administering vaccines experience we combined our data, Triage people for vaccinations or testing, and check eligibility using capabilities, and competencies to screening questionnaires create an online patient scheduling Automate follow-up appointments for two-dose vaccines solution that seamlessly covers: Scale up or down their efforts depending on when, or how many vaccines they receive. Most importantly, healthcare workers, and the aged and vulnerable, can be prioritised for vaccination, followed by the rest of the population who can conveniently, comfortably, and safely book their appointments.

Engagement Scheduling of Registration Estimation Payment Checking into between appointments and checking of costs options appointment provider and of identity patient 36 Experian plc Strategic report

Our strategic focus areas continued 5 Enable businesses to find, understand and connect with

Market audiences Customer trends needs

C hanges in consumers’ A bility to accurately digital behaviour connect businesses P opulation growth and customers worldwide C apacity to offer Proliferation of data products to consumers A dvancements in across channels automation and technology C ompliance with regulations

Who? Why? How? Financial Services E fficiently acquired customers are Identity graphs (offline and online) Retail highly valuable Proprietary consumer data Media C ustomer acquisition is a primary S egmentation models (such as Mosaic) Automotive focus for businesses Advanced analytics Healthcare A dvertising spend moving to digital Platforms simplifying audience creation, channels that can take advantage of Marketers digital delivery and reporting targeted marketing Advertising agencies P artner ecosystem to enable identifying consumers across channels

In a crowded marketplace, What we did this year Future plans businesses want to understand their In November 2020, we completed the The explosion of digital activity during FY21 customers better and communicate acquisition of Tapad in North America, to redefined how people shop, manage and with them more effectively. They advance our position in digital identity spend money, and access various services. resolution for marketers. Tapad augments Some of that activity has returned offline and need to be able to identify audience our offline identity and marketing data assets will continue to do so as vaccine availability groups, then target them with in the US market with cross-device data, broadens, but much will not. As more relevant messages and offers – digital linking and distribution capabilities, transactions and spend occur digitally, we simultaneously managing their to help connect brands to consumers. will ensure Experian provides propositions communication costs as effectively The marketing industry was to help clients with customer acquisition, disproportionately impacted by the COVID-19 onboarding, fraud prevention and detection, as possible. We provide the insights and with authentication which always they need by combining and pandemic, as businesses looked to manage their discretionary spend. Despite this, our complies with privacy requirements. enriching datasets and helping our targeting business made good strategic We will look to expand the solutions we clients identify customers. progress. For example, in the UK and Ireland, provide and the verticals we serve by we successfully partnered with Infosum maximising adjacent opportunities, including to launch a new digital linkage solution. extending across the financial services value Experian Match provides UK publishers with chain and targeting other verticals with addressability at scale, without relying on attractive growth prospects. Our product third-party cookies or requiring a logged-in pipeline continues to grow, allowing us to audience. This means advertisers are able enable trusted sharing of data for targeted to safely and securely match their first-party advertising, and utilising our solutions to customer data against publishers’ accurately connect businesses with addressable audiences in a privacy- customers. compliant way, without any personal data being shared between companies. 37

Transforming Strategic report lives by

helping local 70+ local authorities, NHS Trusts, emergency services and charities authorities used this free resource and vulnerable communities Marketing data isn’t used just by advertisers. It is useful to any organisation that delivers services, We believe that data analytics helping them to find the people who need support as helps make better, more quickly as possible. informed decisions. It plays a fundamental role in how societies With the dramatic rise in COVID-19 cases in March 2020, people in the UK were asked to stop non-essential contact and travel, and to stay at home can respond to and overcome unless for essential reasons. Many shops and workplaces closed, with challenges, and drives positive subsequent loss of work and income for many families. People vulnerable outcomes for everyone. to infection, such as the aged or disabled, were advised to shield at home Sarah Robertson losing their contact with their local communities. Product Director, Experian Marketing Charities and local officials needed to quickly prioritise resources, identify Services, UK and Ireland the people who were struggling, and get them help fast. To do that they needed information on which to act. Our UK and Ireland marketing team knew that we had the data, analytics and expertise to help. We developed a new tool called Experian Safeguard which from concept to deployment took just two weeks. We aggregated and anonymised our ConsumerView database into a dashboard, and included visual mapping tools for accessibility and ease of use. Users could then identify, for example, population groups across the UK that were likely to include those who are 71-years plus, single pensioners or low-income households on the poverty line. Scan the QR codes This free tool was used by more than 70 local authorities, NHS Trusts, for further examples emergency services and charities. In one example it was used by a charity to identify the best locations for new food banks where they could reach the highest number of vulnerable people. At a time of great stress and crisis it has allowed organisations to more effectively plan and prioritise their services and allocate their resources, as well as create communication strategies to engage local communities, and to estimate future demand for services. Access to data and analytics brings greater insight into problems facing society and this was another COVID Outlook Mosaic example of where data drives good outcomes for people, communities & Response Evaluator Our consumer and society as a whole. A 'heat map' of geographic classification for consistent populations across the USA most cross-channel marketing susceptible to developing severe cases of COVID-19, which would likely result in excessive strain on healthcare resources. 38 Experian plc Strategic report

Our sustainable business strategy: Environmental, Social and Governance Transforming lives with data

OUR PURPOSE Creating We are using the power of data to a better transform lives and help businesses grow, by improving financial health tomorrow for people around the world. Our commitment to sustainable business is stronger than ever, and we have rigorous processes in place to mitigate environmental, social and governance (ESG) risks. OUR SUSTAINABLE BUSINESS STRATEGIC PRIORITY Our goals Improving financial health for all

Improving financial health for all THROUGH OUR Reach 100m people through Social Innovation products by 2025 (from Core Social Community 2013) products Innovation investment Reach 100m people through United See page 40 See page 41 See page 41 for Financial Health by 2024

Contributing to the UN Sustainable Development Goals Diversity By 2024 increase the proportion of women in our executive committee and direct reports to 30%, in our senior leaders to 40%, in our 1.4 8.10 9.3 mid-level leaders to 42%, and in our total workforce to 47% Environment ENABLED BY Become carbon neutral in our own operations by 2030 Treating data with respect Science-based target: By 2030 w reduce Scope 1 and 2 emissions Security Accuracy Privacy Transparency by 50% and Scope 3 by 15% See page 43 See page 45 See page 45 See page 46 Gradually offset our Scope 1 and 2 emissions over the five years to 20251 SUPPORTED BY

1 See page 55 for more detail. Inspiring Working Protecting and supporting with the our people integrity environment See page 47 See page 51 See page 53 Experian plc Annual Report 2021 39

Our purpose Our sustainable business strategy Strategic report is to create a better tomorrow for consumers, our clients, aligns with and supports our purpose and business our people and communities. We are doing this by model, helping us add value for our stakeholders unlocking the power of data to create opportunities (see page 24). It sets out our approach to our most for people and businesses. material ESG opportunities and risks.

Highlights in FY21 35 million 61 million Our United for Financial Health campaign has Since 2013, our Social Innovation products have reached 35 million vulnerable people in reached 61 million people – putting us on track communities hit hardest by COVID-19 through to meet our goal of 100 million by 2025 – and financial education partnerships with 11 NGOs generated US$103m in revenue. This year, in the USA, the UK and Ireland and Brazil. PowerScore alone enabled 1.3 million people in Indonesia to apply for credit for the first time.

4.5 million SecurityFirst 6.7 million people in the USA have connected We have maintained our strict information to Experian Boost since March 2019, enabling security controls and SecurityFirst culture as 4.5 million people to instantly improve their we adapted to new ways of working during credit score by adding on-time payments to the pandemic and responded to emerging their profiles. In the UK we launched Experian cyber threats. Boost in November 2020 and have 370,000 active members. Diversity, equity Roadmap to and inclusion carbon neutral We have refreshed our strategy on diversity, We cut our carbon footprint by 58% this year equity and inclusion (DEI) and set public targets and set a science-based target as part of our to improve gender diversity. In 2021, we are ambition to become carbon neutral in our publishing a global DEI report for the first time. own operations by 2030. We became a public supporter of the Task Force on Climate-Related Financial Disclosure and achieved an ‘A-‘ leadership rating from the CDP. w 40 Experian plc Strategic report

Our sustainable business strategy: Environment, Social and Governance continued

and we strive to do our part to tackle climate Our priorities Promoting financial Improving financial health is how we can make change and protect the environment. Improving financial health for all the biggest difference to society by raising This responsible culture also helps us recruit health for all standards of living, tackling inequalities and and retain people with the expertise and Core products contributing to the United Nations Sustainable experience we need to grow our business and Development Goals (SDGs). The economic fallout meet our sustainable business goals. of COVID-19 has further underlined this as a Across our key markets, we see priority, exacerbating underlying financial issues Governance for already marginalised groups in society. significant opportunities to transform The Chief Financial Officer acts as executive lives by tackling financial exclusion We use our core and Social Innovation products, sponsor of our overall ESG programme, which harness the passion and expertise of our focuses on ESG opportunities and risks and the and improving access to credit. people, and donate some of our profits to Company Secretary oversees the Group's More than a billion people in Asia Pacific lack improve financial health for people around the Corporate Responsibility programme. They both access to formal financial services, 45 million world. Through our data and analytics, we give sit on the Executive Risk Management in the USA have thin or no credit profiles, 45 lenders the information they need to offer fairer Committee that oversees how we manage risks million in Brazil do not use bank accounts and access to credit that enables people to get the globally, including ESG risks (see page 72). over five million in the UK have no credit history. essentials that can transform their lives – from Our innovation culture puts consumer and homes and healthcare, to education and We focus on four key aspects of financial health: client needs first, and we have strict processes entrepreneurship. We go further by increasing increasing access to financial services, improving to ensure we build critical ESG considerations access to financial services, and empowering financial literacy and confidence, helping people – such as data security, privacy and accuracy – people to understand and manage their manage their financial lives, and preventing fraud into our products and services. We extend our finances and protect themselves from fraud. and identity theft. We do this through our core high standards to suppliers through our business, Social Innovation products and Improving financial health also supports the third-party risk management framework. community investment programmes. long-term success of our business by A central team and a network of regional strengthening our reputation and stakeholder Improving financial health also supports our corporate responsibility leads, specialists and relationships, driving innovation, generating business. Both core and Social Innovation steering groups across the business manage new revenue streams, and creating potential products that improve financial health are already our Social Innovation, community investment, new customers for us and our clients by generating significant revenue for our business. health and safety, and environmental increasing financial inclusion. Enabling more people to access financial services programmes and impact. The impact expands our potential consumer base. Employees How we work is as important as what we do. framework for our sustainable business who volunteer their time and expertise to support We are entrusted with data on 1.3 billion people programme helps us achieve demonstrable our financial education and community and 166 million businesses worldwide. Treating financial health improvements through our programmes also bring new ideas and that data with respect is essential to maintain people, products and profit. experience back to the business. trust. Keeping it secure is our first priority, and We track metrics related to our charitable and failure to do so is our biggest business and ESG voluntary contributions in each region monthly, risk (see page 75). We must also protect the Core products in line with the Business For Societal Impact privacy of the data we hold, keep the framework. The Board receives regular reports information we have on individuals and In the last two years, more than 4.5 million people on our performance, and we publish global data businesses as up-to-date and accurate as in the USA have used Experian Boost to instantly every year in our Annual Report and possible, and be transparent about the data we improve their credit scores by adding positive Sustainable Business Report. We are collect and how we use it. data from on-time payments to their profiles. increasingly measuring and reporting on the Following its launch in November 2020, we have Our strategy is built on a strong culture of impact of individual products and programmes, 370,000 active Experian Boost members in the corporate responsibility. We aim to inspire and as well as their combined reach. This year, we UK (see page 30). In Brazil, our new Serasa support our people by embracing and have started using the Sustainability Score Turbo encouraged more than 6 million developing diverse talent, and creating an Accounting Standards Board (SASB) reporting consumers to renegotiate 9 million debt inclusive working environment. We are framework to report on material issues (see agreements since its launch in September 2020 committed to working with integrity, always, our Sustainable Business Report). (see page 31). Regulations on positive data have opened up the potential to reach millions more across the country (see page 29). Around the world, 110 million consumers now use our free platforms to access products and services that can help them understand and manage their credit profiles. Our consumer services also help individuals spot potentially fraudulent transactions in their credit profiles, and we offer a range of solutions to help lenders and other clients prevent fraud. This year, our core fraud and identity theft products Experian has been a Experian is featured in the S&P are estimated to have prevented at least member of the FTSE4Good Global Sustainability Yearbook US$10bn in fraud for our clients, and across the ESG index since 2012. 2021 as a leader on ESG – Group fraud and identity products generated scoring in the top 15% of the 10% of our business revenue. professional services industry. Experian plc Annual Report 2021 41 Strategic report Improving financial health for all Core products Social Innovation Community investment

Social Innovation Community investment Innovation and advocacy This year, we channelled innovation for financial Through our Social Innovation programme, we The COVID-19 pandemic has further health – including COVID-19 recovery efforts invest in developing new products that are accentuated inequalities and we have stepped – through our DataLabs, our annual Future of specifically designed to offer additional societal up to help hard-hit communities by launching Information Conference, our Creating a Better benefits as well as creating revenue for our our United for Financial Health programme, Tomorrow Awards and our first-ever global business. Our Social Innovation products have which has reached 35 million people in less hackathon. We invited external ideas for reached 61 million people in the last eight years than a year (see page 42). overcoming financial issues arising from COVID-19 by sponsoring the Experian Financial – including 28 million this year – and we’re This year, our total contributions reached Health prize as part of the US Massachusetts targeting 100 million by 2025. Since 2013, they US$12m. Employees volunteered 21,000 hours Institute of Technology’s Solve programme. have generated US$103m in revenue from a of their time (in and outside working hours) to total investment of over US$8m. help out, despite COVID-19 restrictions limiting We also advocate for financial health more Well-established products such as our Limpa face-to-face opportunities. Local initiatives broadly. This year, we provided expert input to Nome debt recovery portal in Brazil and Prove included support for communities and financial the World Bank’s guidelines for lenders relating ID-Link identity authentication in India have education programmes to help people through to the reporting of consumer payment data contributed to the significant expansion in reach the pandemic. during the extended COVID-19 emergency period. Payment holidays and forbearances this year. Several newly launched products We also ran a virtual campaign to #Map1Million negotiated between lenders and consumers have also achieved a big reach in their first year. that saw employees volunteer more than 2,280 who suffered hardships because of COVID-19 hours to map previously unmapped areas of PowerScore has given 180 million people in were reported and reflected in credit reports to the world that are home to an estimated Indonesia a credit profile for the first time by avoid adverse effects on credit scores as a 923,000 people. The aim is to support using data about their mobile phone use and result. We also explored barriers to small Humanitarian OpenStreetMap Team – an more than 1.3 million applications for credit businesses accessing credit, as a member of international team dedicated to humanitarian products have already been made as a result. the International Finance Corporation’s SME action and community development through Our Social Determinants of Healthcare product Finance Forum, and sponsored the Forum’s open mapping – in its ambition to map areas has appended the records of 7.6 million people annual global conference. in the USA to connect them to preventative home to one billion people at risk of disaster healthcare programmes to help them avoid or experiencing poverty. Inclusion on the Our Identities of the World campaign continues major medical problems and bills in future. In map can also be a critical step towards to raise awareness of the impact of financial Brazil, almost 500,000 consumers have financial inclusion. exclusion through powerful personal stories. It registered for our Trilha Financeira (financial has reached over 36 million people over the last trail) online training modules to learn how to three years and this year highlighted challenges better manage their finances. faced by microbusinesses in Peru.

1.4 8.10 9.3

We’ve identified three United Nations SDGs – and their specific targets – where we can make the biggest contribution through our strategic focus on improving financial health for all. These three targets are all 180 million related to improving access to PowerScore has given 180 million credit and financial services. hours people in Indonesia a credit profile >2,280 for the first time by leveraging to help our NGO partner's data from their mobile phone use. Missing Maps project put previously unmapped areas of the world on the map. 42 11 We teamed up with 11 Our sustainable business strategy and Governance NGOs to reach 35 continued million people in less than a year

Transforming lives through

United for Financial

Health COVID-19 presents a serious threat not just to physical health, but to financial health for millions of people around the world. Our United for Financial Health programme is using financial education to empower vulnerable communities that have been hit hard by COVID-19 and kickstart their road to recovery.

We teamed up with 11 NGOs to reach 35 million people in less than a year – smashing our first-year target of 15 million. We are providing financial education resources, funding, products and volunteers to help our partners reach the communities they have trusted relationships with, in ways that are most meaningful and helpful to them. Armed with opportunity and financial The partnerships this year focused on our three primary consumer literacy, we believe that Experian’s markets – the USA, the UK and Ireland and Brazil. Many support women, commitment to unlocking the power young people and minorities to help tackle inequalities that have been exposed and deepened by COVID-19. of data to create opportunity means more people will be set up not just to In the USA, we kicked off the United for Financial Health programme with Operation HOPE, reaching over 4.5 million people from ethnic minority survive, but to thrive in the months groups with support to raise their credit scores from survival to thriving. and years to come. Their willingness We’re also working with the National Association for the Advancement of to lean in and support individuals and Colored People (NAACP) to help black American families struggling to keep families through our work in a time of up with mortgage payments, with Black Girl Ventures to support black and global crisis demonstrates their brown women entrepreneurs, with SaverLife to encourage people from low-income backgrounds to make a habit of saving, and with 211 to tackle sincere commitment to community stress among low-income and diverse communities. uplift and outreach. In the UK, we supported National Numeracy’s Number Confidence Week, John Hope Bryant and we partnered on the launch of the National Literacy Trust’s Words that Operation HOPE Founder, Count campaign, reaching almost 3.5 million people with the aim of tackling Chairman, and CEO the link between poor reading skills and low financial competence. We’re also partnering with The Mix to reach under-25s through digital channels, with the Trussell Trust to offer access to financial education through their network of food banks, and with The Big Issue to provide guidance through their magazine, online publications and e-wallet for vendors. Some of our partners have also used our new 'Living on 4.27' YouTube channel to reach more young adults. In Brazil, we’re working with Sebrae to help small businesses recover from the economic shock of COVID-19 through an online financial education Scan me platform and mentoring from Serasa Experian volunteers. to find out how this pilot scheme is helping Our United for Financial Health partnerships are enabling us to reach empower and protect consumers who don’t have an existing relationship with Experian, providing vulnerable consumers a model we can scale up to help more people and providing insights for our business to help us create wider social benefits. Now, we are going further with a target to reach 100 million people by 2024. Experian plc Annual Report 2021 43 Strategic report Treating data with respect Security Accuracy Privacy Transparency

We have controls in place to check for Data is the lifeblood of our business. Security compliance and constantly scan for potential So ensuring we collect, store Safeguarding data threats, with several layers of protection for our and manage data safely and data assets (see diagram below). Our perimeter appropriately is fundamental to our We hold vast amounts of data on people and deflects tens of thousands of attempts every ongoing success. It’s important our businesses. The loss or inappropriate use of day. clients and customers know we take data and systems could result in material loss Our Global Security Operations Centre works of business, substantial legal liability, regulatory around the clock to identify suspicious or our responsibilities very seriously enforcement actions and significant harm to when it comes to managing data malicious activity, with teams in Malaysia, the our reputation. UK and the USA, as well as automated tools securely, ensuring privacy measures and AI. If they identify a threat, our incident are managed effectively, the data we Our approach response team steps in to eliminate it with hold is accurate and we are open We continually enhance our security support from in-house forensic data specialists and transparent about the data we infrastructure, practices and culture across the and external experts if required. business through our SecurityFirst programme. hold and the way it is processed. We invest heavily in cyber security and have We gather intelligence to help our security specialist teams, state-of-the-art technology teams stay ahead of evolving cyber threats. and rigorous due diligence procedures to deal This year, we expanded our interaction with law with potential threats. enforcement authorities and others in our industry to help give each other early warnings Our security approach has three tiers: applying of high-potential cyber security threats. We also tools and processes to prevent threats from share our knowledge to help other businesses entering our environment; detecting if a threat and consumers keep their data safe. Our enters our environment; and mitigating any annual Data Breach Industry Forecast for 2021 threats by minimising the potential for highlighted areas that have become information to be extracted from our increasingly vulnerable to cyber attack in the environment. COVID-19 era. Predicted threats include vaccination misinformation and disruption, hackers holding home devices for ransom, and Protecting our perimeter exploitation of ‘track and trace’ apps to gain access to personal user information. We have a defence-in-depth approach to This year, COVID-19 led to almost our entire protecting our critical data assets, which workforce moving to homeworking and we took provides multiple layers of control and steps to provide employees with secure remote protection. connections to our systems. Most data breaches involve some human interaction, often Perimeter scanning something as simple as clicking a link in an Scanning the perimeter for open access email. Our email and web browsing controls and scanning applications for regulatory protect against this kind of malware, and our compliance security training also encourages people to Firewall think carefully about what they are clicking on. Blocks unauthorised access while Our Development, Security and Operations permitting outward communication (DevSecOps) teams work together to build security considerations into our products Intrusion Prevention System (IPS) Server protection throughout their lifecycle, from start to finish. Examines network traffic flows to detect Antivirus, host security, continuous reporting We use a range of processes, including manual and prevent vulnerability exploitation penetration testing, to discover, detect and remediate any potential security risks at every Web Application Firewall (WAF) stage of product development – from concept to Filters, monitors, and blocks HTTP coding, build, quality assurance and production. traffic to and from web applications We conduct regular risk assessments and vulnerability checks, and our operations are Realtime Application Self subject to external cyber security audits every Protection (RASP) year. Simulated exercises and a global data Detects and blocks computer attacks by breach plan prepare our cyber security teams taking advantage of information from and senior leaders to respond rapidly in the inside the running software event of a breach. 44 Experian plc Strategic report

Our sustainable business strategy: Environment, Social and Governance continued

Security governance The GSO conducts due diligence to identify All our employees and any contractors who The Chief Information Security Officer has any potential risks before an acquisition, have access to our systems must complete overall responsibility for Experian’s global followed by an in-depth post-acquisition mandatory annual training on information security strategy and the Global Security Office security assessment that is reviewed by security and data protection. We track training (GSO) sets relevant policies and standards. The Global Internal Audit. completion rates weekly and provide a monthly dashboard to the Security and Continuity Security and Continuity Steering Committee – When it is necessary to provide third parties Steering Committee. which includes the Chief Executive Officer, Chief with access to our data and systems, the GSO Financial Officer, Chief Operating Officer and ensures we provide access in line with our More than 250 training courses are available for Chief Information Officer – oversees our information security requirements. We extend people across the business to find out more approach to keeping data secure and protecting stringent standards on information security to about keeping information safe across various consumer information. It reviews key metrics our suppliers and partners through the terms web, mobile and desktop platforms, on security tools, compliance and training of our contracts. All third parties are risk applications and software. We provide completion rates every month. The Audit assessed. Of our nearly 13,000 active third additional in-depth training for people working Committee also receives progress reports at parties, 1,674 have been identified as significant in higher-risk roles, such as product and each of its meetings. or high risk and all of these have undergone software development. more in-depth assurance by the GSO. We have a comprehensive Global Security We continually refresh our training to stay up Policy and controls based on the internationally Security requirements are tiered based on this to date with evolving risks and circumstances. recognised ISO 27001 standard. Our robust risk assessment, and can include increased This year, we focused on risks associated with information security programme builds on controls for higher-risk third parties. We monitor working from home and made sure employees industry-recognised procedures, including the compliance through our third-party risk understood how to secure their home network, US National Institute of Standards and management framework and third parties for example by using filtering software and Technology (NIST) framework. We seek and identified as significant or high risk are added to strong passwords. We adapted our regular receive third-party assurance through ISO the GSO's continuous monitoring programme awareness campaigns to continue providing 27001 certifications of key business areas and which alerts us to any material changes to employees with frequent updates on important systems, as well as other recognised external trigger follow-up action if needed. topics, such as email protection and phishing. accreditations of our security programmes. For example, we hold a Cyber Essentials Our information security culture Certification and perform risk assessments At Experian, information security is everyone’s against our critical and external-facing responsibility. We set out clear requirements for applications annually. employees and business units in our Security Security, Audit and Risk teams work together to Risk Management and Governance Policy. We continually improve our assurance capabilities invest significant time and resources in training and test the effectiveness of our controls. Our and awareness on information security through Three Lines of Defence model for risk our SecurityFirst programme. management (see page 73) includes review by Our strong information security culture starts Global Internal Audit and oversight from the from the top of the business. Senior leaders are Board. Any potential policy breaches are highly engaged and continually reinforce the thoroughly investigated and we take message that security is the personal disciplinary action where appropriate. responsibility of everyone working with us.

Our Global Information Values

Wherever we operate, we are committed to five core Global Information Values: 1. Balance 2. Accuracy 3. Security 4. Integrity 5. Communication 250+ training courses are Scan me available for people across to find out more about the business to find out Experian’s commitment more about keeping to its Global Information information safe. Values. Experian plc Annual Report 2021 45 Strategic report Accuracy We monitor how data providers deal with Empowering consumers queries about data and how they remediate to correct their data Improving data them to improve accuracy. If data providers are Our platforms enable us to continually monitor unwilling to implement improvements to meet and measure data accuracy. We also have Accurate credit reports enable lenders to give our standards, we will no longer source data processes for consumers to review their own people fairer access to credit and essential from them. services to improve their lives (see pages 28 data, raise a query and have corrections made and 30). Any inaccuracies in credit reports – and Monitoring and improving if needed. the data they are built on – can cause problems data accuracy Our dispute centre in the USA and our website for consumers, and potentially deny them fair Once we have acquired data, we frequently in the UK make it easy for people to raise a access to credit and services. update and periodically audit the information in query about credit information and get it We understand how important this issue is for our databases to ensure it is as current as corrected quickly. Many of our products also consumers, and place accuracy at the heart of possible. We also apply further quality empower consumers and businesses to protect our Global Information Values, which guide our assurance techniques, including data-matching their data and check for any inaccuracies in approach wherever we operate. We constantly algorithms, before providing data to our clients. their financial profiles. In Brazil, we have seen a strive to improve the accuracy of our data in a This ensures we provide clients with substantial increase in consumer requests for competitive market to ensure our clients can information that represents consumers and corrections to their data since new regulations always rely on it to make the most appropriate businesses as accurately and fairly as possible. enabled the inclusion of positive data in credit decisions. reports. We pass on these requests to the data In North America, the team that manages the provider to evaluate, resolve and supply We have strict processes to ensure data accuracy of data from around 12,000 providers corrected data where errors are confirmed. accuracy – all the way through from designing makes it a priority to rapidly resolve any a new data supply and sourcing accurate data conflicts or errors that are likely to have a in the first place to monitoring and improving material impact on a consumer’s credit score. Privacy accuracy over time, and resolving any Every month, we receive around 32,000 inaccuracies or queried information. Our focus submissions from data providers, and update Protecting data is on timeliness, accuracy and completeness of around 1.4 billion records – 98% within 24 the data we hold, and the reports we provide to hours. Through continuous improvement Data privacy is becoming an increasingly hot our clients. efforts, we have raised the accuracy rates of topic as people are living more of their lives credit reports delivered to 99.9% in recent years online, a trend that has been further Sourcing accurate data (see chart). accelerated by COVID-19 lockdowns and restrictions this year. Our Group Operating All our data comes from reputable sources and In the UK and Ireland, we have added over 20 Committee and senior leaders receive regular our quality control procedures help us identify million new records in the last year alone, briefings to keep them apprised of privacy and weed out inaccurate or out-of-date constantly reviewing the market and working developments around the world. information before we add it to our databases. with new lenders and sectors to ensure their We work with data providers to review and customers are represented appropriately within We provide services based on information about continuously improve the quality of the the bureau. Our UK and Ireland Data Office millions of individuals and businesses. As a information we receive. To do this, we regularly leads our efforts to achieve world-class data steward of the data we collect and use, we have review and report back on quality to our data governance through a strong focus on data a responsibility not only to ensure the security of providers, and we offer a comprehensive suite quality, acquisition, transparency and privacy. that data, but to maintain the privacy of of software and analytics tools to help them consumers through appropriate and responsible check data before they submit it to us. use. We believe use of data must benefit both businesses and individuals, while meeting consumer expectations related to privacy. Accuracy rate for credit reports delivAccuracyered in rate Nort forh Amercreditic reportsa delivered in North America

100% 99.9% 99.9% 99.9% 99.6% Data accuracy is mission critical for us. Because when a credit report is 99.0% inaccurate, and someone is denied credit or pays a higher price for 99% credit, then it can have a huge impact on their lives. In 2016 our data 98.3% accuracy was at 98.3%. That sounds high but we knew we had to do 98% better, so we invested in a programme to find where material and consequential errors arose and took action to fix them. 97% We have now achieved 99.9% accuracy for our US consumer bureau, an impressive, industry-setting standard. Yet we’re not done. We are 96% innovating to continuously improve our data integrity and focus on targeted changes that drive even better accuracy for consumers. 95% Jan 16 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Donna Smith, Chief Data Officer, Consumer Information Services, North America 46 Experian plc Strategic report

Our sustainable business strategy: Environment, Social and Governance continued

Our privacy policies vary in each country or financial products in the year ahead. The aim is to region to comply with local regulatory Transparency give our customers more comprehensible data, requirements. Underlying these policies is our Making data accessible to help them understand how that impacts their commitment to provide consumers with notice, financial health as a whole. choice and education about the use of personal We strive to be transparent about the information In the USA, we set out our privacy policies for information. Educated consumers are better we collect from consumers and third parties, and specific products and services on the privacy equipped to be effective, successful participants how that data is used and shared. section of our website. Consumers can access in a world that increasingly relies on the In the UK, the privacy section of our website the information that Experian holds on them by exchange of information to deliver products and provides privacy policies for different parts of signing up for a free or paid membership through services efficiently. the business, and our Marketing Services the Reports and Scores section of our website. Lenders need access to accurate information Consumer Information Portal (MSCIP) explains They will then be presented with a report about people’s financial profiles from Experian data rights and sets out the various ways we showing the data Experian holds on them and or other credit bureaux. Such information is use personal and anonymised data. The content how to dispute this information online if integral to an efficient and competitive credit on these websites is designed to be clear and necessary. Californian residents can also manage ecosystem which provides innovative products easy for non-experts, and the MSCIP includes a their personal data permissions through the that enable consumers to get the most out of series of engaging videos on topics such as CP3A portal. their data, contributes to economic growth and how we obtain data and how people can benefit Our newly designed credit reports in North supports a stable consumer banking system. from sharing their data. America include a new Credit Report Insights Our Marketing Services business also gathers, Individuals can use the MSCIP to find out if they section that features infographics, colour- analyses, combines and processes data to help are on our marketing file and understand what coding and easy-to-interpret explanations of organisations better understand consumers so data we hold about them, where this data the factors that may be helping or hurting a they can offer them relevant products and comes from and how it is used. It includes a consumer’s credit status and score. services, and communicate more effectively prominent feature enabling people to opt out of We also work with financial institutions to and at the right time. targeted marketing if they choose. enhance transparency with consumers. In the We evaluate every product and service to ensure To add transparency around the marketing UK, when a consumer applies for credit, the we strike the right balance between consumers’ profiles we build, the MSCIP allows consumers lender will direct them to an industry standard privacy expectations and the economic benefit to to view our Mosaic classification for any valid information notice which presents clear and both consumers and clients. This commitment to UK postcode. Through this feature, consumers consistent information explaining how credit balance is one of our Global Information Values can get a flavour of how marketers may view reference agencies use and share personal that define how data must be secured, managed them, or people like them, when using our information. In the USA, financial institutions and used. Our comprehensive data protection Mosaic segmentation to improve the relevance provide adverse action notices when an programme details the steps we take to mitigate of their marketing messages. The results use applicant is denied credit or employment based data protection risks, and what we expect from simple icons to show key attributes such as on information included on their consumer our employees. property, transport, lifestyle and holidays in a credit report. This notice includes a brief way that’s easy to understand at a glance. description of the data used for the decision We are committed to obtaining, processing and and a contact for the credit reference agencies using data compliantly and responsibly. We only In Brazil, our privacy terms page has been that provided the data. ever share data with authorised and trusted developed to be more user-friendly, by translating organisations. When we do so, we follow strict the consumer contract into simple and accessible guidelines and comply with all relevant laws. language and layout before the user logs in. We also provide consumers with illustrations of what Regulations on data privacy – the way data is their positive data means, based on their credit collected and used, and how consent is gained card information, with plans to extend to other from consumers – are tightening around the world. We respond to government consultations and engage with regulators as privacy regulations and guidance evolve. Data offers Our new-look credit reports in the USA huge potential to support jobs and prosperity. We need a regulatory framework that nurtures and supports use of data to encourage growth, while protecting consumers’ privacy. Many regional and national regulations on data privacy share common principles, and we advocate for interoperability to support global commerce. We have updated our data processes to ensure compliance with regulations, such as the EU General Data Protection Regulation (GDPR) in Europe, the California Consumer Privacy Act (CCPA) in the USA and the Brazil General Data Protection Law (LGPD). Experian plc Annual Report 2021 47 Strategic report Inspiring and supporting The Experian Way our people The Experian Way represents our values, and the behaviours we expect from all our At Experian, we work to create a employees in their everyday activities. This year, our people have continued to find new better tomorrow for consumers, for ways to demonstrate these behaviours while adjusting to different ways of working. businesses, and for our communities. This ambition underpins our plans for our people – to ensure we have the best people, Delight Innovate Collaborate Safeguard Value customers to grow to win our future each other working in a high-performing and inclusive environment where they feel they can do their best work in External recognition across the globe support of our vision.

Last year, we set out our people priorities, focusing on: hiring and developing world-class people in ‘game-changer’ roles; ensuring a supportive, flexible and inclusive environment that attracts world-class talent; establishing a high-performance mindset throughout the organisation; and creating frictionless employee experiences. As the COVID-19 pandemic emerged at the beginning of 2020, our priorities needed to shift quickly to supporting our people where and when they needed it most. Our Board and leadership team took a 'people first' approach when making pandemic-related decisions. This philosophy has AUG 2021 - AUG 2022 Fev/2021 - Fev/2022 AUG 2021 - AUG 2022 USA BRASIL COSTA RICA remained in place throughout the year as we have sought to look after our people, listen to their changing needs, and continue to build and recommend the programme to a colleague. We steps taken to support our people, both celebrate our diverse and inclusive culture. introduced or improved Employee Assistance practically and personally, have helped them Programmes in all regions. In the UK and adapt to new ways of working, with the question Looking after our people Ireland, and North America, we extended the ‘I am able to be productive in my current work Throughout the pandemic we have increased time people could take for caring set up’ scoring well across all pulse surveys – our focus on the health and well-being of our responsibilities, and in EMEA we refreshed the averaging 88% positive across the five surveys. teams across the world. We quickly holiday leave policy to help employees cope Line managers have also played a critical role, implemented regular pulse surveys so we could with the additional demands placed upon them. and we are proud employees have recognised respond rapidly and ensure the right support this, averaging 85% favourable response to the We placed additional importance on the ability was available. We emphasised mental health, statement ‘I am receiving the right level of to collaborate remotely. Connect 4, for example, reflecting the challenges people faced while support from my manager at this time’. working remotely. A response to the statement is an initiative to connect groups of four ‘I am feeling physically and mentally well’ was colleagues randomly, to replicate spontaneous To further the two-way conversation with our 75% favourable on average across five pulse ‘water-cooler’ conversations and to grow employees, and to strengthen the connection surveys we ran during the year. We put in place employee networks. between our people and leaders while working virtually, we accelerated the launch of Horizon, a range of initiatives to support our teams, for Our people also demonstrated their capacity for our leading-edge employee communications example #ReachOut, which gave all employees creating new connections independently, an platform. This allows users to receive important access to resources to support their physical example being our Home-Aloners group updates in one place and access it at any time, and mental health whenever they needed it. – employees who live on their own coming from anywhere, as well as curate their own together to create a community of support, We also developed programmes to help content by subscribing to a series of optional swapping stories, pictures, hints and tips. employees adapt to working from home. For categories. They can also publish approved example, in Asia Pacific, Thriving Remotely Our strong culture has really brought out the content directly on social media. This has been provided resources such as e-booklets, best in our people, and we are encouraged to a resounding success, with 97% of our people podcasts, webinars, senior leadership vlogs, say we have seen pride in Experian, and registered on the platform, over 900,000 post playlists and infographics, alongside other employee advocacy, increase. In our pulse views and 20,000 comments from employees. activities to communicate with colleagues. We surveys, responses to ‘I am proud to work for Throughout FY22, we will continue to develop ran mindfulness and resilience programmes for Experian’ saw a 5% increase since our 2019 the platform, to encourage even greater employees, which were received well, with Asia Annual People Survey and ‘I would recommend employee connection and engagement. Pacific receiving a 95% Net Promoter Score Experian to family or friends as a place to work’ (NPS) - the percentage of those who would increased by 3% over the same period. The 48

Transforming lives by

responding to racial inequality Many people’s image of Brazil is one of sandy beaches, carnivals, and a melting pot of cultures. in Brazil However, it is grappling with a historical legacy of racial inequality stemming from the 4m black people enslaved and trafficked from Africa. While slavery in Brazil was finally abolished in 1888, policies were later put in place that continued to discriminate against black people. These included blocking them from certain jobs, preventing them from buying homes in particular areas, and forcing them to live in neglected favelas. These policies were, unfortunately, highly effective and their impact still ripples through Brazil today. Racial inequality is a very real The representation of black and mixed-raced people in higher education is problem in Brazil. It is a massive low, and on average they earn half the income of white people. 64% of the challenge to overcome and there is a prison population are black or mixed race compared with 54% of the long road to go given the systemic general population, and black and mixed-race people suffer from racial problems in society. Yet I’m optimistic microaggressions or worse on a daily basis. about the future. We’re going in the Recently, there has been a wider acknowledgement that these problems right direction and we are focused on exist and that there needs to be an active response to overcome them. At implementing real change, fast. I’m Experian we want to be part of the solution, reflecting our commitment to really proud about how everyone at a culture of diversity and inclusion. Serasa Experian is working together As part of serving the community we are focused on helping marginalised to be part of the transformation. populations, specifically black and mixed-race, through our financial education volunteering programmes, as well as promoting our free Natasha Santos financial tools that can help reduce debt, improve credit scores and help HR analyst and leader of Black ERG, people access the credit they need. Serasa Experian, Brazil Inside our business we have identified that just 20% of our workforce in Brazil are black, compared with over half of the Brazilian population, so we are working to improve the black representation. We have launched a mentorship programme between senior employees and black employees to help support them in their careers. And our senior leaders are engaging in reverse mentoring, so they are aware of and understand the challenges that black employees face. In response to a recent employee survey in which 60% of black respondents said that not understanding English was a significant barrier to them at work, we are launching subsidised English lessons. We are also ensuring that new trainees and interns joining the company are given roles that don’t require English. We hope that we can start to make a difference and ensure a better quality of life for everyone, regardless of their race. Experian plc Annual Report 2021 49 Strategic report Our 5 key commitments for Continuing to build and celebrate training in all regions – with North America our diverse and inclusive culture launching Consciously Unbiased, a new, diversity, equity and inclusion (DEI) multimedia approach to raising awareness. The Through a year of our people working topic of allyship has been central to our focus 1. Active sponsorship predominantly remotely, we have been able to this year, with How to Ally guides launched We have appointed executive sponsors for five really bring to life our focus on inclusion. We globally to ensure all employees can play their areas of our DEI focus. They each sit on our have been welcomed into people’s homes part in making Experian an inclusive place to Group Operating Committee, ensuring these through the medium of video calls, seen our work. Our Accelerated Development topics are represented in decision-making team-mates with their children, partners and Programme (ADP) in Global Decision Analytics, at the highest level. pets, we have discussed the impact of the designed to support talented women at mid and pandemic on each of us and, as a result, have Gender: Jennifer Schulz, Group President, lower tiers to progress in the organisation, saw got to know each other more deeply as Vertical Markets great success, with 44% of the participants individuals. We have continued to work and Race and Ethnicity: Craig Boundy, Chief being promoted after the programme. The have experienced first-hand that people who Executive Officer, North America Women in Leadership DiveIn (WILD) feel able to bring their whole selves to work can LGBTQ+: Jose Luiz Rossi, Managing Director, programme in Asia Pacific, designed to give achieve great results. UK and Ireland real and raw experiences of leadership Disability: Ben Elliott, Chief Executive Officer, This year our Group Operating Committee development and career acceleration for Asia Pacific announced commitments to five key focus women, concluded with an 88% retention rate Mental Health: Lloyd Pitchford, Chief areas for DEI, as shown on the right. Our and 71% of women experiencing development Financial Officer leadership commitment is clear, and we are of their roles since finishing the programme. In fortunate this is matched by our employees’ Experian Information Technology Services 2. Better understand our opportunities passion and drive on this topic – seen through (EITS), we launched Advancing Women Leaders and challenges the continued success of our Employee in Tech, a nine-month leadership-development We believe that it is critical that we have a deep Resource Groups (ERGs). Globally, we now have programme for high-potential employees. understanding of the make-up of our population over 30 ERGs. They continue to raise awareness, We have also built upon our commitment and their experience of working here so we can inspire involvement, and encourage action on a through several partnerships outside of the set relevant goals and develop meaningful DEI broad range of topics. Employees have created business. We became a global signatory of the programmes and practices. In the coming year two more ERGs this year in the UK and Ireland. United Nations Women’s Empowerment we will focus on improving demographic data One is Black at Experian, which exists to create a Principles (WEPs), which promote gender and our people will be asked to take part in a safe and inclusive environment for people of equality and women’s empowerment in the voluntary census. black heritage to work, access opportunities and workplace, marketplace, and community. In the grow and fulfil their potential. The other, the UK and Ireland, we signed the Business in the Disability Network was launched to help the 3. Measure progress against specific goals Community Race at Work Charter, and became business think differently about disability and We are also raising our ambition and setting a signatory supporting Stonewall’s Trans Rights how we can be more inclusive. three-year targets for gender diversity. Our Are Human Rights campaign to help reform the current global gender diversity and FY24 Our global commitment to recognising and Gender Recognition Act (GRA) 2004. We also gender targets are: celebrating international diversity events has became an official partner of Women in Data Representation of women FY21 FY24 thrived virtually, with regions hosting a range of for the very first Women in Data week in the UK. Senior Leaders 32% 40% events to mark International Women’s Day, In North America, we established a partnership Mid-Level Leaders 35% 42% International Men’s Day, Pride, International Day with Disability: IN, the leading non-profit Total workforce 44% 47% of Persons with Disabilities and World Mental resource for business disability inclusion Health Day, as well as celebrating additional worldwide. We’ve been a sponsor of events that local traditions. All regions published Diversity support us in building diverse pools of future and Inclusion Reports to celebrate their talent, including AfroTech, one of the largest 4. Ensure accountability achievements and set out areas of focus for the multicultural technology conferences in the We will be holding annual strategic reviews coming year. We have provided DEI-related USA, and Grace Hopper Celebration, the world's largest gathering of women in computing. chaired by our CEO focused on DEI. We will also UN Women’s Empowerment Principles have bi-annual DEI deep dives and quarterly In recognition of our efforts and achievements, reviews with each region to monitor our we are proud to have been awarded several performance closely and take quick action distinctions through FY21 which reflect our where needed. culture and our commitment to a positive and inclusive environment for our people. 5. Support our people We are developing a global Conscious Inclusion It is impossible to discuss DEI in 2020 without training programme to ensure that we all referring to the tragic death of George Floyd understand the importance DEI holds for our and the resulting spotlight upon racial inequity people, our business and our customers. 1. High-level corporate leadership in society. This focus created introspection on a 2. Treat all women and men fairly at work, personal and corporate level, and while we feel without discrimination good about everything we have done and the Scan me To read more 3. Employee health, well-being and safety progress we have made, we know there is more about our DEI journey and 4. Education and training for career to do. In direct response, we announced see our first global DEI advancement donations to Operation HOPE, double-matching report. 5. Enterprise development, supply chain and of employee donations to associated causes, marketing practices and established a Product Review Team to 6. Community initiatives and advocacy ensure our products address the needs of black 7. Measurement and reporting 50 Experian plc Strategic report

Our sustainable business strategy: Environment, Social and Governance continued

and other disadvantaged communities. Throughout the period since, we have focused 1,000+ on disadvantaged communities through our participants took part in our United for Financial Health programme, first global hackathon, forming partnerships with groups such as the forming almost 100 teams, NAACP, Black Girl Ventures, the Trussell Trust with winners being selected and The Mix. across our five global strategic focus areas. To ensure we are clear about the gaps and opportunities in our DEI work, and to reflect our Development of our people has remained and revamp our global manager training commitment to continuous improvement, we central to our work – with the focus shifting to programme, which we have relaunched as launched an independent audit through an remote-learning opportunities. We were well the New Leader Programme. It is designed external partner. The findings will inform our placed with our on-demand, access-anywhere to develop well-rounded leaders who can FY22 DEI strategy. Elevate Learning platform, launched in 2019, lead their teams effectively, beyond and have continued to make the most of it technical capability and focuses on areas Hiring and developing throughout the year. Our partnership with such as inclusion, psychological safety, our world-class workforce Pluralsight supports our technology-focused engagement, high-performing teams, Our ability to continue to attract world-class employees in keeping their skills relevant, given and agility around change. the frequent need for new capabilities. Our people is critical, and we have continued to We have kept up our commitment to providing employees consumed almost 15,000 learning invest in a strong presence on social media in strong support for functional skills hours on the platform this year. Our Stepping support of this. Our Experian Creator series is development. This year we ran our first cohort Stones tool, developed internally, enables our live across all major social channels, of the Global Analytics bootcamp. These are people to match their skills to short-term highlighting innovation through product stories. interactive immersive workshops, delivered projects, or ‘gigs’, to build capability and apply We are profiling our current tech talent weekly by our own experts, that provide intensive new skills in ways they may not have the on LinkedIn and other social media, targeting hands-on experience in Advanced Analytics opportunity to do in their main roles. In addition, future talent tech groups (such as Girls Who and Artificial Intelligence. We also ran our first Stepping Stones has helped us re-distribute Code) and early talent. Our careers site now has ever global hackathon based on ideas and work and create a balance between those with a page dedicated to technology and innovation, collaboration for recovery after COVID-19. Over reduced capacity and those who can absorb featuring product stories, Creator series 1,000 participants took part, forming almost more and over 1,000 employees have now highlights, technology-leader content, and open 100 teams, with winners being selected across registered for opportunities. In Global Decision tech roles. In FY21 our social media following our five global strategic focus areas. The Analytics, we ran Be World Ready, an initiative increased, now with over 1 million followers. winners received a large donation for the to help employees build their personal Furthermore, our hires sourced via social media charity of their choice, and significant employability. The programme also encourages channels reached 53%, far surpassing our FY21 investment in developing their solutions. target of 29%. employees to stay connected to the external job We are proud of how we adapted to hiring and market, to keep their skills and experiences Our high-performance culture has provided onboarding our colleagues remotely and have relevant. Finally, the pandemic has placed high critical security this year, bringing clarity for assigned buddies to all new joiners to help them demands upon our leaders to manage in new employees in an unstable and uncertain integrate effectively in a virtual world. Results ways. We have taken the opportunity to review environment. We have continued evolving this are good, with 96% of new joiners feeling positive about their onboarding experience, a 2% increase in the last year. This strong internal sentiment is matched by external measures: we exceeded expectations by improving our Glassdoor score for the fifth year in a row, High sitting 4.1 out of 5.0 in March 2021. Senior Leadership Performance Masterclass + Amplify1 CEO Accelerate Forum Ambition Glassdoor trend 2016-2021 Experian Ambition 4.2 Business Senior Managers Programme 4.0 Network 3.8 3.6 Emerging Leaders 3.4 Middle Managers Programme 3.2

Glassdoor score 3.0 2.8 New Leader Programme 2.6 All Line Managers Elevate Performance Modules Jan Jan Jan Jan Jan Jan 2016 2017 2018 2019 2020 2021 Elevate Learning 1 Amplify – refresher sessions for those who have previously All Levels / GetAbstract / Development Guides been through our high performance programmes (High Accelerated Development Programmes for women, e.g. ADP, WILD Performance Masterclass, Accelerate Ambition, Ambition) Experian plc Annual Report 2021 51

part of our culture, with our approach being review process. We also expect managers to be Strategic report further woven throughout our leadership Working with positive role models for ethical behaviour. development programmes. We launched integrity Any breaches of our Code of Conduct or Amplify - a new opportunity for leaders who associated policies could undermine our have previously been through our high- Working with integrity is one of our core values reputation and stakeholder trust. Our Three performance programmes - to re-group and and central to The Experian Way of working. Our Lines of Defence risk management model refresh their thinking with the high-performance Code of Conduct, available in several languages, reinforces our culture of compliance, and we principles central to our organisation and sets out clear guidance to help everyone at encourage people to report any suspected focusing on what matters most now, in this Experian make the right decisions. It is policy breach or unethical activity without fear ‘new normal’. To establish high performance supported by detailed policies on specific topics of reprisals. We ask employees to start by throughout our organisation, all employees now such as anti-corruption, gifts and hospitality, talking to their manager if they have concerns. have access to a series of high-performance fraud management, complaint management, Employees and third parties can also report any content explaining our philosophy at Experian. fair treatment of vulnerable consumers, concerns, anonymously if they choose, through We are also building upon the success of the product development and marketing, our 24-hour Confidential Helpline. Elevate Performance platform for year-round whistleblowing and tax. performance management. We have run a pilot We take any allegations of ethical breaches very of an augmented platform which fully integrates Anti-bribery and corruption seriously. All reported concerns are investigated an employee’s performance goal with We take a zero-tolerance approach to bribery or by relevant functions, such as Human development plans – linking directly to relevant corruption in our business and our supply Resources, Global Security Office or Global learning materials. Teams can also run chain. Our Global Anti-corruption Framework Fraud Investigations, to identify root causes ‘check-ins’, a simple but frequent online prohibits facilitation payments, kickbacks, or and take appropriate corrective action. This interaction, helping them communicate. The any form of bribery or corruption. year, 37 concerns were reported. The majority platform will go live in FY22, to support more of these, 78%, concerned human resources powerful discussions on performance. The accompanying Global Gifts and Hospitality related matters. Policy sets out strict ethical standards relating While we build technical skills for the future, to gifts, entertainment, hospitality, sponsorship, we also plan for the future of our broader travel expenses and donations. We also have Respecting human rights leadership roles and are proud of our healthy controls to ensure we conduct any We are committed to respecting human rights approach to succession. This year 89% of our sponsorships, charitable contributions, and upholding the United Nations Universal top-100 leadership roles have at least one lobbying or political donations ethically and Declaration of Human Rights (UDHR) and the identified successor ready now or within two in compliance with all relevant laws. UN Guiding Principles on Business and Human years; while over 50% have two or more Rights (UNGP) in our business and supply chain. potential successors. Our suppliers are contractually obliged to Everyone at Experian completes training on ensure their employees, agents and our Global Code of Conduct, which sets out Looking forward subcontractors refrain from paying or receiving clear standards to avoid any infringement improper bribes, facilitation payments, of human rights. The pandemic has required us to think gratuities or kickbacks. If we identify any differently about the way we work in the future, suppliers as high risk for bribery or corruption, We are committed to treating all our people and we have embraced this opportunity to we refer them to the Compliance team for fairly and with respect. Experian is an create greater flexibility for our people. We further due diligence, including an assessment accredited Living Wage employer in the have spent considerable time listening to our of corruption, regulatory and reputational risks. UK, going beyond the legal minimum wage employees, tracking key measures of how we to pay employees the amount the Living work, watching how norms have shifted and Effective assessment and mitigation of Wage Foundation has calculated they really analysing how to make our approach a success. corruption risks are a critical component of need to live on. The ‘new normal’ at Experian will be a flexible our Compliance Management Programme one, and this is not just about remote working, for the business, and we conduct periodic This year, we have strengthened our focus on it's our commitment to make a difference in our assessments check for corruption risks. We DEI globally (see page 49) and will publish our people's working lives. Our people will have the also follow rigorous due diligence procedures first Global DEI Report to enhance disclosure on opportunity to work in a way that works for to identify any risk of improper payments this important topic. We have signed up to the them – this may be working remotely, in the during mergers and acquisitions, or when UN Women’s Empowerment Principles, and our office, or a mix of both, as well as flexibility over we enter into joint ventures. North American business received a perfect score from the Human Rights Campaign start and finish times. Our aim is to strike the Our Finance and Global Sourcing teams right balance between what works for an Foundation’s 2021 Corporate Equality Index on have training and controls to detect and stop policies and practices for LGBTQ+ employees. individual and what works for the business – improper payments, with support from our we believe both are critical. Our new approach Global Internal Audit team. If we identify any Our Supply Chain Principles set out clear is built on trust, flexibility and enabling success concerns, we promptly investigate them and standards on human rights, and we include and as we undergo this shift and all the take appropriate action. clauses in our contracts that oblige suppliers operational changes that will follow, we are to protect workers’ rights and freedoms. We placing a strong focus on reinforcing intangible Training and compliance monitor compliance through our third-party anchors like values, behaviours and employee risk management framework. We also expect experience to ensure everyone in their own way All employees (including part-time employees suppliers to set similar requirements for their can thrive in a more remote and flexible world. and contractors) complete mandatory training own suppliers and subcontractors to extend on our Code of Conduct and on anti-bribery and high standards throughout the supply chain. corruption when they first join Experian. Thereafter, they must complete refresher training every one to two years and we make sure that they do so through our performance 52 Experian plc Strategic report

Transforming lives by

supporting slavery survivors Victims of modern slavery often find they have also been the victims of fraud and identity theft. We worked with Hope for Justice to adapt our authentication process to help survivors, who often have little or no documentation to prove who they are, get access to their credit reports and resolve fraudulent debts through our dispute process.

This year, our funding has helped Hope for Justice support nearly 500 We are tremendously proud of our modern slavery survivors in the UK with advocacy and advice services – profound relationship with Experian from language training and job skills to financial, legal and mental health and have been absolutely delighted to support. We also helped Hope for Justice reach over 15,000 people in see what incredible outcomes have vulnerable communities through Facebook Live Sessions during the been achieved over the past year, as a COVID-19 restrictions. direct result of our partnership. Our A data model we developed is helping Hope for Justice focus its resources collaboration continues to build in parts of the UK where they can have the greatest impact and we have provided a similar model to help the organisation choose where to locate resilience within potentially vulnerable support hubs in the USA as they grow their presence in North America. communities, assists victims to freedom and empowers survivors towards sustainable remedy and lasting independence. We are excited to see what the future holds, and – together - to reach even more people whose lives have been impacted by this abhorrent affront to freedom. Paul McAnulty UK & Europe Programme Director, Hope for Justice Experian plc Annual Report 2021 53 Strategic report Tackling modern slavery We conduct a risk assessment of all the third Protecting the Supplier risk assessments and in-depth parties we work with, including suppliers and training help procurement teams identify risks indirect clients. Overseen by our Third Party environment of modern slavery in our supply chain, and take Risk Management team, we assess risks related to data security and privacy, business Our Environmental Policy commits us to action if they have any concerns. Our Slavery minimising the impacts associated with our and Human Trafficking Statement provides continuity, compliance and reputation (including bribery, corruption and modern slavery). business activities. Improving our further information on our commitment, environmental performance is managed and policies and actions to tackle modern slavery Of the thousands of third parties we work with, communicated at Board level. risks in our business and supply chain. most fall into the minor or moderate risk As an information services business, the main Experian is a founding member of the category in our initial risk assessment. Those we consider higher risk – based on factors such environmental impact we control is the carbon Slave-Free Alliance, which brings together footprint of our offices, data centres and businesses working towards a slave-free as the type of product or service they provide and the type of data they have access to – are business travel. We are also working to better supply chain. Following a comprehensive understand and manage the climate impact of assessment of our approach by the Slave-Free subject to more in-depth assessments, oversight and controls. our supply chain, and aim to reduce our Alliance, we are completing a three-year environmental footprint further by eliminating improvement plan to improve our processes for As our first line of defence, the business the use of single-use plastic in our facilities as identifying and preventing modern slavery risks function that owns the relationship with the far as possible. in our supply chain. A quarterly steering group, third party is responsible for identifying, headed by our Group Chief Procurement Officer tracking and resolving any issues. Periodic Our TCFD statement and Head of Strategic Pricing, manages reports on key suppliers, drawn from news implementation of the plan. We have also sources around the world, help us monitor risks In March 2021, Experian became an official invited members of the Slave-Free Alliance and in our supply chain by alerting procurement supporter of the Task Force on Climate-related our charity partner Hope for Justice to provide teams and supplier relationship managers to Financial Disclosures (TCFD). We are committed expert guidance. First steps this year included any issues. to aligning our corporate reporting with the assigning responsibility for mitigating risks and TCFD recommendations and early reporting on implementing improvements to the owners of This year, we have strengthened our processes the majority of its requirements before it relevant areas of the business. for ongoing monitoring of higher-risk suppliers becomes mandatory for us in FY22. and third parties to include periodic sampling We are using our data and analytics to support and testing of controls to ensure our standards Governance wider efforts to tackle modern slavery, and are upheld. If we identify any gaps in controls, contribute to the United Nations’ Sustainable we log these in our centralised global Experian has a long-established process for Development Goal to eradicate forced labour. governance, risk and compliance system, and identifying, assessing, responding to and Our DataLabs are collaborating with the United track issues through to resolution. We will not reporting business risks through the Global Nations University Centre for Policy Research work with – and routinely reject – third parties Risk Management framework that combines a and the University of Nottingham’s Rights Lab that do not uphold our standards on critical bottom-up approach at a regional and business to develop an ‘analytical sandbox’ that will use a issues, such as data security. unit level, and a top-down approach at a global combination of datasets to help pinpoint level. We are committed to supporting diverse locations that may be vulnerable to modern Risks are identified and assessed at project and slavery risks. We are also working with Hope suppliers through our strategic sourcing process that is designed to offer a level playing regional level, overseen by the Strategic Project for Justice to support survivors of modern Committees and Regional Risk Management slavery. field for all third parties. In the USA, we support women and minority-owned suppliers as a Committees that report to the Executive Risk member of the National Minority Supplier Management Committee (ERMC), on a quarterly Partnering with suppliers Development Council and the Women’s basis. The Board has oversight of climate- Our Supply Chain Principles and Code of Business Enterprise National Council. Diverse related issues along with the Audit Committee, Business Conduct represent the minimum suppliers account for around 6% of our US which oversees a response for global risks and ethical, labour, human rights and environmental base. opportunities, including climate change. standards that all Experian suppliers must To support our climate strategy, we are working Our carbon neutral plan, published in June meet. As part of their contracts with us, all 2020, is an example of our long-term strategy suppliers must confirm that they accept our with our most carbon-intensive suppliers to request data to help us get a better to mitigate the impacts of climate change. standards or have their own equivalent Regular updates on our plan are presented to standards in place. understanding of our Scope 3 carbon footprint (see page 56). the Group Operating Committee. The Board also We integrate risk management and compliance receives reports of our corporate responsibility in our supplier selection process, alongside activities and performance from the Chief commercial considerations. We use our Executive Officer at every Board meeting. These third-party risk management framework to reports include progress made on strategic conduct due diligence on suppliers and third drivers to address climate-related issues (for parties before we work with them, and assess example, our science-based target and TCFD and monitor risks throughout our working reporting). In 2021, the ERMC endorsed both our relationship. Our Three Lines of Defence science-based target and this TCFD statement, controls support compliance. prior to Board approval. Regionally, our established environmental management system (EMS) demonstrates best practice in minimising the environmental and climate impacts of our business, ensuring we 54 Experian plc Strategic report

Our sustainable business strategy: Environment, Social and Governance continued

comply with local regulations and continuously During the last year we have engaged with improve our performance. Where certified, our top 20 strategic global suppliers, regular management reviews of the EMS are acknowledging the indirect environmental performed, involving regional leadership, to impact of our business operations. Our supply ensure the objectives of the management chain plays an important role in achieving our system are being met, the system is effective, 'A-' leadership category carbon reduction target for Scope 3 and we are and risks and opportunities are reviewed. Three keen to explore opportunities that can help to of our sites in the UK and our site in Bulgaria Strategy accelerate our decarbonisation plan. We will are certified to ISO 14001:2015. These locations Experian recognises the significance of climate expand the scope of the engagement in future are externally audited to ensure conformity with change to our stakeholders and we are years to include a greater number of suppliers this standard, and we align all our operations committed to identifying, addressing and and prioritise those with the most material globally to this standard, which is internationally managing risks and opportunities presented by environmental impact. recognised as best practice. climate change both now and in the future. We We have reviewed our climate risks and In FY21, we strategically reviewed existing and have been responding to the CDP climate opportunities that exist across our business future climate change risks and opportunities change questionnaire since 2007, which is lines, and across the regions in which we with a multi-disciplinary group of stakeholders aligned with the TCFD recommendations, and operate, by engaging with key internal across the business, representing each most recently achieved an 'A-' leadership rating. stakeholders. This process has enabled us to geographic region we operate in. The output of Our climate change strategy includes a create a comprehensive climate risk and this was to: commitment published in June 2020 to become opportunity register identifying a wide range of physical and transitional climate-related risks Identify and assess climate-related risks and carbon neutral across our own operations by and opportunities across short (one to two opportunities to our business arising from 2030, an example of the long-term strategic years), medium (two to five years) and climate change approach we are taking to respond to the physical and transitional risks associated with long-term (five or more years) timeframes. This Conduct climate scenario analysis to help climate change. Our carbon neutral plan climate-specific risk and opportunity register understand the long-term impacts of climate incorporates a science-based target to reduce has been developed in accordance with the change on our business model our global carbon emissions and purchasing Global Risk Management framework to ensure Ensure climate-related risks are fully certified carbon credits to offset unavoidable, this was performed as a fully integrated incorporated into our established risk residual emissions across our direct operations process. assessment framework (Scope 1 and 2). We are gradually phasing in The risks included in the matrix below have Identify risk owners to develop the capability carbon offsetting between 2021 and 2025 (see been identified as part of the recent strategic in the management team for assessing and page 56). review, and have been classified based on their managing the identified risks. inherent risk (before control measures have

Failure to adapt products and services to Chronic impact of climate change leading to Increased energy demand for operating data changing markets climate migrants' loss of credit history and centres, providing cooling as the global mean Reputational impact of failing to meet climate constraints to data transfer temperature increases change commitments and targets Failure to disclose ESG performance to investors and customers High

Failure to incorporate climate risk on investment Disruption to power supply in data centres Increased operational cost from direct impact of decisions exposing Experian to financial risk (e.g. Intermittency of grid supplied power and rising climate change policy/regulation pension investment) operating costs Increased operational cost from indirect impact Failure to comply with climate change policy/ Attracting, engaging and retaining employee (supply chain) of climate change policy/ regulation talent through responsible business strategy regulation including climate change Interruption to Experian supply chain as a result Moderate of extreme weather Third-party services being disrupted by extreme weather and associated grid power disruption

Lack of access to sustainability-linked finance Unstable carbon market for purchasing carbon Extreme weather impacting customers in (green investment bonds, sustainability-linked credits operating markets bonds) Minor

Possible Probable Very likely Experian plc Annual Report 2021 55

been considered). The standard process for risk emissions2. Our emissions in FY21 dropped by To achieve our Scope 3 target, we will engage Strategic report classification is based on residual risk (once 58% compared with the previous year. This with our suppliers to minimise the indirect control measures have been fully considered reduction was due to a combination of factors, environmental and climate impact of the and reviewed). This will be a priority for FY22. including the intermittent closure of our offices products and services we procure. We have as a result of local COVID-19 restrictions, already engaged our top 20 suppliers to In FY22, we will complete our journey to report increased use of renewable energy contracts understand their climate strategies including in full alignment with the TCFD and a reduction in business travel. commitments to science-based targets and net recommendations and will perform climate zero strategies. This engagement will lead to the scenario analysis using high and low carbon Our total carbon footprint this year was 16.8 identification for collaborative opportunities to scenarios. This analysis will systematically thousand tonnes of CO e, down from 40.3 2 reduce the carbon intensity of the products and review our assets across the globe against a thousand tonnes the previous year. The carbon services that we purchase and also discuss series of region-specific climate-related intensity of our business decreased by 60% to strategic opportunities such as the use of hazards (for example, water stress, 3.1 tonnes per US$1m of revenue. We continue renewable electricity, adoption of electric vehicles, susceptibility to drought and increased rainfall to invest in energy efficiency technologies in end-of-life takeback schemes, eliminating the use events) based on specified increases in mean assets around the globe and are progressively of single-use plastics and minimising packaging. temperature. sourcing more renewable electricity. In FY21, We will continue to monitor the levels of business 34% of our electricity consumption was from This scenario modelling will be performed using travel in FY22 as travel corridors reopen however, renewable sources. recognised climate models such as RCP 2.6 and we do not expect business travel to return to RCP 8.51 that explore well below 2°C (low This year, we set our science-based target: pre-pandemic levels. carbon scenario) and 4°C (high carbon scenario) Scope 1 and 2 (1.5 degree scenario): To climate change pathways respectively. This will reduce absolute Scope 1 and 2 emissions by Reducing emissions from buildings enable us to assess our exposure and 2 50% by 2030 (from 2019) The COVID-19 pandemic has accelerated the vulnerability to climate-related risks, quantify Scope 3 (2 degree scenario): To reduce move to more flexible working. Almost our the financial impact of climate-related risks and Scope 3 emissions from purchased goods entire workforce moved to full-time opportunities, and demonstrate the resilience of and services, business travel and Well-To- homeworking this year, with just a small our strategy when we consider the future Tank3 by 15% by 2030 (from 2019) number of employees working on site to keep impact of climate change. To enable the delivery of our Scope 1 and 2 our facilities and data centres going. We plan to maintain a more flexible approach to working Metrics and targets target and carbon neutral plan we have worked with colleagues across the globe to identify as we prepare for a post-pandemic new normal We measure, externally assure and publicly carbon reduction, energy efficiency and (see page 51). report our carbon footprint (see table on page renewable energy opportunities. To date, over Further consolidation of offices, together with 56). In order to accurately reflect our renewable 40 projects have been identified. Throughout increased use of renewable energy, will help to electricity consumption, we are shifting our FY22 we will continue to work towards reduce emissions from our buildings. This year, emissions metrics from using location-based implementing these projects to drive progress we switched to renewable energy at three more Scope 2 emissions to market-based Scope 2 towards our 2030 commitment. offices in the UK and Ireland and North

Risk management

Climate-related risks are identified using the Defence) that conducts a strategic review of the any new activities or changes to variables have established Global Risk Management risks. been captured. Key risks that are identified as a framework as detailed on page 72 of this report. result of this process are maintained in the The following process ensures risks are This framework combines a bottom-up Global Risk Inventory, reviewed by the ERMC, appropriately identified, addressed and approach of engaging with local subject matter approved by the Audit Committee and presented managed. experts (First and Second Lines of Defence), to the Board. At present, climate change is who have in-depth knowledge of business This process is completed at least twice a year classified as an emerging risk. activity, with a top-down approach (Third Line of to ensure that it remains appropriate and that

Step 1 Step 2 Step 3 Step 4 Risk identification Risk assessment Risk response Risk reporting & monitoring Consider key business Assess controls A ccept or remediate current Business unit and regional objectives Estimate likelihood, impact and risk and control environment level Identify principal risks velocity Determine corrective action if RRMCs and ERMC Identify key controls Consider legal, reputation and needed Audit Committee conduct exposure

1 R epresentative Carbon Pathway 2.6 (RCP 2.6) is a climate model based on a greenhouse gas projection that requires global CO2e start declining by 2020 and reach zero by 2100, representing a ‘best-case scenario’. RCP 8.5 is a climate model based on a greenhouse gas

projection that projects global CO2e continue to rise, representing a ‘worst-case scenario’ of climate change. 2 This year, we have updated the way we calculate our total greenhouse gas emissions by using our Scope 2 market-based rather than the Scope 2 location-based indicator. This enables us to factor in the renewable energy we purchase and helps track our performance against targets and our carbon neutral commitment. 3 Also known as ‘Fuel-and-energy-related activities’, is an average of all the greenhouse gas emissions released into the atmosphere from the production, processing and delivery of a fuel or energy. 56 Experian plc Strategic report

Our sustainable business strategy: Environment, Social and Governance continued

America. We are also developing a global Pacific helped colleagues avoid an estimated Assessing Scope 3 emissions strategy for reducing emissions from data 318kg of carbon emissions. In previous years, we have only tracked and storage at our on-site data centres, as well as Last year, we committed to eliminating as reported Scope 3 emissions related to air travel. from external sites or cloud-based solutions. much single-use plastic in Experian-controlled In FY21, we engaged external experts to While the move to homeworking this year facilities as possible within two years. With undertake a full assessment of our Scope 3 has reduced our operational emissions, hardly anyone working in our facilities this year, emissions, using best practice models and a we recognise there is a knock-on effect in we have postponed action on this target, but our combination of procurement and financial data increased energy use in employees’ homes. commitment still stands. In the coming year, we available for FY19, the last full year before the We are exploring how to account for this in will assess how the new flexible working policy exceptional circumstances of COVID-19. our Scope 3 reporting in future and we have and patterns impact the amount of single-use This initial analysis estimated our baseline engaged colleagues to help them reduce plastic usage in our facilities to establish a Scope 3 emissions in FY19 as 495.3 thousand environmental impacts at home (see below). baseline, and from there plan to establish tonnes. The biggest contributor to this total is a quantifiable target for its maximum purchased goods and services (72%), followed Engaging employees to reduce feasible reduction by business travel (10%) and capital goods (6%) environmental impacts (see data table). Investing in high-quality offsetting We encourage employees to use virtual meeting To improve the accuracy of these estimates, we Last year, we committed to offset our Scope 1 alternatives to minimise travel, and this year are requesting more detailed information from and 2 emissions gradually over the five years to there was a big reduction in business travel and suppliers on the portion of their emissions 2025. Accordingly, we will offset 20% of these related emissions due to COVID-19 restrictions. attributable to the products they supply to emissions for FY21. We aim to invest in Experian. We are also engaging with suppliers We also asked employees to keep thinking offsetting projects that not only reduce carbon, to understand whether they have carbon about the environment and reducing their but bring added value to communities to reduction programmes or science-based footprint even when they are working from enhance our contribution to the United targets in place. home. Our Little Green Steps campaign in Asia Nations SDGs. Capturing climate-related opportunities Our carbon footprint Climate-related opportunities identified for our

CO2e Unit 2021 2020 2019 business include:

Scope 1 000s tonnes CO2e 2.2 3.0 3.6 Developing products and services to support 1 Scope 2 (market-based) 000s tonnes CO2e 14.3 22.1 25.6 customers in response to acute and chronic 2 Scope 3 (air travel only) 000s tonnes CO2e 0.3 15.2 14.3 weather-related impacts of climate change 1 Total emissions 000s tonnes CO2e 16.8 40.3 43.5 Accelerating the transition to a low carbon 3 Scope 2 (location-based) 000s tonnes CO2e 22.2 25.5 29.8 future by enabling customers to access credit 3 facilities to support the low carbon economy Total Scope 1 and 2 000s tonnes CO2e 24.4 28.5 33.4 Total Scope 1 and 23 normalised by revenue Providing insights about the carbon impact of

– per US$1m revenue tonnes CO2e 4.5 5.5 6.9 products and services to inform the Total energy consumption in the UK4 GWh 25.5 27.2 29.5 consumer decision-making process

1 Calculated with Scope 2 market-based carbon emissions. We have calculated market-based Scope 2 emissions using electricity Accessing green investment funds by supplier emission factors where available. Where supplier factors are not available, we use residual emission factors where demonstrating a strong climate change available. If residual emission factors are not available, we use location-based emission factors. strategy and effective management. 2 Scope 3 includes emissions from global air travel. In FY21 air travel emissions have been calculated using Radiative Forcing (RF) emission factors for the first time and we intend to continue to report on this basis in the future. For comparison, the non-RF reported We are already developing new climate-related figure would be 0.1. products and services. Our UK DataLab team is 3 Location-based carbon emissions. We have calculated location-based Scope 2 emissions using the International Energy Agency (IEA) building a tool to support clients in developing carbon emission factors for electricity. their climate change risk disclosures to meet 4 Includes scaled data for electricity, gas, diesel used in generators and district heating consumption in the UK. We have reported on all the emission sources within our total carbon footprint which includes Scope 1, 2 and 3 (falling within our Group financial statements) guidance from the TCFD and the UK Financial in line with the UK Companies Act 2006 (Strategic Report and Directors Reports) Regulations 2013. Conduct Authority (FCA). As part of a leadership development programme, our Business Full Scope 3 emissions analysis (estimated base on FY19 baseline) Information Services team in North America is exploring a solution to help clients build Thousand Contributions to Total Scope 3 (FY19) = information on environmental impact and Sources of Scope 3 emissions tonnes of CO2e1 Scope 3 (%)1 495.34 thousand tonnes of CO e 2 sustainability into their evaluations of suppliers Purchased goods and services 357.4 72% or lending applications. Business travel 49.12 10% Top 4 sources of controlled Capital goods 31.2 6% Scope 3 emissions Through our Social Innovation programme, we Employee commuting 24.6 5% Purchased goods and services are developing an agriculture index to support Business travel clients in offering affordable finance and Upstream leased assets 17.5 4% Upstream leased assets (including insurance to smallholder farmers, which can Fuel-and-energy-related activities3 6.2 1% cloud, outsourced servers) Fuel-and-energy-related activities help boost their productivity and protect them Waste generated in operations 5.2 1% (or Well-To-Tank) from climate risks. Investments 4.3 1%

1 Baseline data corresponds to FY19. 2 Business travel: For greater accuracy, air travel emissions were calculated using the individual flight and seat classes, rather than the round trip mileage. It also includes all other types of travel - rail, taxi, grey fleet, public transport, and indirect emissions from overnight accommodation. 3 Not included in Scope 2. Experian plc Annual Report 2021 57

Non-financial information and s172(1) statement

We report in line with the Non- The key areas where non-financial adverse 3. Environmental matters1 Strategic report Financial Reporting requirement as impacts could arise are: We take our environmental responsibilities seriously, and the reduction of greenhouse gas detailed in Sections 414CA and 1. Respect for human rights emissions is a key performance indicator for As data custodians, we have a responsibility to 414CB of the UK Companies us (see page 17). See also page 53 for further safeguard consumer privacy, and we continue Act 2006. actions and initiatives Experian is taking to help to systematically educate our people on how to protect the environment2. handle sensitive data through our SecurityFirst Our aims programme. 4. Anti-corruption and anti-bribery Our business model is set out on pages 20 Our Anti-Corruption Framework1 sets out Our Global Code of Conduct1 aligns with the to 25. We believe data can create a better our zero-tolerance policy on bribery and United Nations Universal Declaration of Human tomorrow for everyone, transforming lives and corruption in any form, and this message is Rights, and our commitment to ensuring an societies, making credit lending simpler, faster reinforced through mandatory annual training ethical supply chain1 is borne out by our and more effective, and helping businesses to for employees. become more efficient, with faster and more membership of the Slave-Free Alliance. 5. Social matters convenient service delivery to consumers. 2. Employees Experian has many initiatives in place to Employee engagement is a key performance deliver our purpose of creating a better Non-financial risks indicator (see page 17), and we talk on pages tomorrow for consumers, businesses, our 49 to 50 about our many programmes and The Risk management section of the Strategic people and our communities. The role we play initiatives that inspire our people to be their report, starting on page 72, sets out the Group’s benefits everyone: businesses grow, people best, to bring their whole selves to work, our approach to identifying and managing our prosper and communities thrive. This happens commitment to diversity, equity and inclusion, principal risks and uncertainties. Our Three in many ways, including through our core and our recruitment, retention and succession Lines of Defence model provides a rigorous business, the development of Social Innovation practices that help to mitigate the risk of our governance framework, and the list of principal products, employee volunteering and support dependence on highly skilled personnel. risks starting on page 75 gives details of the for community groups and charities. policies, outcomes and due diligence processes that control and mitigate those risks. 1 More detail is available at www.experianplc.com/responsibility/our-policies. 2 Further detail is also available at www.experianplc.com/responsibility/data-and-assurance.

Section 172

Section 172 legislation, which became Section 172 defines the duties of company Experian plc, a Jersey-incorporated company, effective in the UK during FY20, aims to help directors and concerns the duty to promote and the Board embrace Section 172 and fully shareholders better understand how directors the success of companies. Throughout FY21, support its aims, and we are reporting in line have discharged their duty to promote the the directors of the Company continued to with the UK requirement. success of companies, while having regard exercise these duties while having regard to We outline below, through use of cross to the matters set out in Section 172(1)(a) the s172 matters, and also to other relevant reference, where we have considered the to (f) of the UK Companies Act 2006 (s172 factors as they reviewed and considered s172 matters throughout this Annual Report. matters). In addition, the 2018 UK Corporate proposals from senior management, and Governance Code recommends that boards as they governed the Company on behalf describe how the matters set out in Section of its shareholders through the Board and 172 have been considered in Board its committees. discussions and decision-making.

Section 172 matters Specific examples Page

(a) The likely consequences of any decision in Our dividend policy, taken together with sections of our Financial review, 62 the long term explains how we balance returns to shareholders with capital invested organically and on acquisitions Our governance framework shows how the Board delegates its authority 93 (b) The interests of the company’s employees Our purpose in action - COVID-19 response 10 Employee engagement 17, 24 (c) The need to foster the company’s business Partnering with suppliers 25, 51 relationships with suppliers, customers We comply with the requirements of ‘The Reporting on Payment Practices and others and Performance Regulations (2017)’ for all of our in-scope UK companies (d) The impact of the company’s operations on Improving financial lives 30 the community and the environment Protecting the environment 53 (e) The desirability of the company maintaining Upholding high ethical standards 51 a reputation for high standards of business Partnering with suppliers 25, 51 (f) The need to act fairly between members of Stakeholder engagement 24 the company Investment proposition 94, 95 58 Experian plc Strategic report

Regional review North America

Ascend, with strong demand for our data growth of 16%. This was fuelled by new services, marketing and account management memberships and product innovation. Experian modules as well as first-time contributions Boost has proved to be an innovative new from newer modules like Ascend Intelligence product to help consumers to manage their Services. In keeping with our ambition to make finances, with 6.7m connected accounts. Brand credit and lending simpler, we also made good investment through our ‘purple cow’ advertising progress towards developing our suite of campaign has yielded considerable growth in Craig Boundy verification services offers, and after the free memberships which totalled 41m at the CEO, North America year-end secured important new client wins. year-end, up from 30m free members at the Growth in these areas offset significantly end of FY20. We continue to diversify our reduced volumes in relation to unsecured business model. We have successfully entered lending, and lower software revenue, as well as into automotive insurance matching, which North America was resilient despite challenging lower revenues from retail clients as they supplemented growth from subscription-based external market conditions. Our strategic reduced marketing expenditure. credit education services and credit matching investments in innovation and our pursuit referral fees. Our credit matching lending panel of new business opportunities have been We made further progress in our strategy to added more lending partners who are attracted successful. We made good progress with grow in specialised verticals. Health delivered a to our platform because we are able to deliver Ascend, our strategy to grow in specialised very solid performance. We have expanded the a large audience and because of our ability to verticals like Health, and through expansion range of services we offer to our hospital match consumers with suitable credit offers. of our Consumer Services business. clients to help them manage their revenue We enhanced Experian Boost and now cycle and we are steadily increasing our consumers can contribute payment history presence in new customer segments such as Revenue in North America was US$3,530m, data from streaming services (including Netflix) the payer sector and pharmacies. Our recent with total revenue growth of 9% and organic to their credit scores as an eligible tradeline, investments, designed to enhance the revenue growth of 7%. The difference related to and we continue to invest in a new breed of consumer experience through digital channels, the acquisitions of Tapad and Corporate Cost smart services to help consumers manage have proved well timed. We saw strong traction Control and other smaller acquisitions. their financial health. for these services as our hospital clients sought North America was very resilient in the face of to provide healthcare in virtual settings. This The strength in our revenue performance the marketplace challenges. While we were also benefitted authentication volumes as contributed to strong EBIT progression, up 10% able to rely on some support from counter- clients sought to verify patient identities. At the to US$1,201m. The Benchmark EBIT margin cyclical revenue streams, we benefitted equally, other end of the customer lifecycle, we saw increased by 30 basis points year-on-year to if not more, from our investments in innovation, good demand for solutions which provide 34.0%, even as we invested in customer our brand and from the progress we have made revenue certainty for healthcare clients. Our acquisition in support of Consumer Services. in developing new business opportunities. automotive vertical, while volatile through The B2B segment delivered organic revenue the year, was also relatively resilient. growth of 4%. Mortgage volumes were robust Empowering financial lives is an important as historically low interest rates led to higher aspect of what we do at Experian and we consumer refinancing activity. We secured new delivered one of our strongest years ever for and expanded client relationships for Experian Consumer Services with organic revenue

Total revenue growth Benchmark EBIT and Revenue split % Benchmark EBIT margin 2021 9 US$m Margin % A. B2B: Data 50% 2021 1,201 34.0 B. B2B: Decisioning 20% 2020 11 C. Consumer Services 30% 2020 1,093 33.7 2019 11 A 2019 940 32.3 2018 8 20181 821 31.4 2017 7 2017 779 31.8 C

B Organic revenue growth Revenue by activity % Total Organic 2021 7 2021 2020 growth growth US$m US$m % % 2020 11 B2B: Data 1,761 1,642 7 5 2019 10 B2B: Decisioning 694 679 2 2 2018 6 Total B2B 2,455 2,321 6 4 Consumer Services 1,075 926 16 16 2017 5 Total North America 3,530 3,247 9 7 1 Restated for IFRS 15. Experian plc Annual Report 2021 59

Latin America

enhanced propositions in FY22, and we intend consumer data extremely seriously and we Strategic report to make all new scores and attributes available initiated an extensive and detailed review which through our Ascend technology platform. was conducted over several months and Across the region, we signed 12 new clients supported by multiple third-party experts. This in the year for Experian Ascend and plan to investigation has found no evidence that any of introduce new modules in the coming months. our systems have been compromised. We have We had good growth in fraud and identity provided our conclusions and the detailed Valdemir Bertolo management, which included new wins for results of our investigation to the relevant CEO, Brazil our CrossCore platform, all of which contributed authorities, including the Federal authorities to a solid year for Decisioning. who continue to pursue a criminal investigation against the individuals involved. Nowhere perhaps better illustrates our We continue to execute on our strategy to be commitment to empower consumers than the Performance in Spanish Latin America was the undisputed leader for negative and positive progress we have made in Brazil. Consumer weaker as parts of the region have been data in Brazil and to address new market needs Services delivered another year of outstanding especially hard hit by the COVID-19 pandemic. with our innovative platforms. We signed new performance, with organic revenue growth of We have placed a strong focus on operating multi-year, multi-solution agreements with 144%. We have established a model, unique in efficiency, while sustaining new product our largest clients and secured a number Brazil, where we can provide consumers with investment and undertaking technology of new clients. Consumer Services goes financial information, help people to better transformation. More recently, we have seen from strength to strength. understand their credit scores, compare pricing evidence of recovery which will help us to and apply for credit offers, as well as offering resume our strategic ambitions to diversify Revenue in Latin America was US$625m, with identity monitoring subscription services. our traditional bureau offerings and focus both total and organic revenue growth of 9% Consumers can also use our collections on developing new opportunities such as at constant exchange rates. Organic revenue marketplace to pay their bills and even to see services to consumers. the impact of these bill payments in improved growth in Brazil was 11%. Benchmark EBIT in Latin America was credit scores through our free Score Turbo US$172m, up 4% at constant exchange rates. B2B organic revenue grew 1%. Strength in offer. As a result, we have grown our free The Benchmark EBIT margin from ongoing Serasa Automotive and Decisioning in Brazil membership base to 59m, compared to 45m activities at actual exchange rates was 27.5% offset weakness in traditional credit bureau in FY20. Audiences of this size and scale have (2020: 30.1%) mainly reflecting revenue mix volumes across Brazil and other markets in attracted new lenders to our platform, including effects. Latin America. a growing proportion of the emerging FinTech In Brazil, we made good progress despite the community in Brazil. Our team in Brazil is challenging backdrop, signing new multi-year, committed to innovation-led growth and we multi-solution agreements with our largest are excited by the opportunities that lie ahead. clients, with increased share of wallet. We are In January, we were subject to media also driving widespread adoption of positive speculation claiming that Serasa marketing data propositions which is leading to volume data was part of data from multiple growth in enquiries. We expect to sustain this organisations illegally offered for sale on the trajectory with the introduction of a range of dark web. We take our responsibilities to protect

Total revenue growth2 Benchmark EBIT and Revenue split % Benchmark EBIT margin 2021 9 US$m Margin % A. B2B: Data 73% 2021 172 27.5 B. B2B: Decisioning 15% 2020 13 C. Consumer Services 12% 2020 220 30.1 2019 6 A 2019 231 32.7 C 2018 6 20181 259 33.3 2017 9 B 2017 251 34.4

Organic revenue growth Revenue by activity % 2021 9 Total Organic 2021 20203 growth2 growth2 2020 13 US$m US$m % % B2B: Data 457 578 1 1 2019 6 B2B: Decisioning 92 114 2 2 1 Restated for IFRS 15. 2018 6 Total B2B 549 692 1 1 2 At constant exchange rates. Consumer Services 76 40 144 144 3 Revenue for FY20 has been re-presented for the 2017 9 reclassification of our Consumer Services business to the Total Latin America 625 732 9 9 Consumer Services business segment. 60 Experian plc Strategic report

UK and Ireland

estate and resume profitable growth, as well as the important step to launch Experian Boost in to take advantage of the many opportunities the UK and this has made a promising start. which lie ahead. We already see tangible The constraints on credit supply in the early evidence of progress in the form of much- part of the year also impacted revenues in our improved client net promoter scores, higher credit comparison marketplace. However, there employee engagement levels, greater network was an improvement in the trajectory as the stability, and a robust new business year progressed and we exited the year with Jose Luiz Rossi performance. growth in Q4. Our free membership base grew Managing Director, UK and Ireland to 9.5m consumers, compared to 7.5m last B2B revenue from ongoing activities declined year, with 370,000 active Experian Boost (6)% at constant exchange rates. Revenues memberships. were down for much of the year due to We have made good progress with our reductions in UK bank consumer lending and Revenue reductions and the impact of our transformation programme in the UK and reduced demand for software investment. Our transformation programme affected our EBIT Ireland. Our ambition in the region is to simplify marketing services segment was also affected performance. Benchmark EBIT from ongoing and modernise our technology estate and by reduced marketing expenditure. We activities was US$122m, down from US$173m resume profitable growth. We returned to successfully pivoted towards COVID-19 support the year before. The Benchmark EBIT margin growth in Q4 and delivered much-improved propositions, including government loan from ongoing activities was 16.6% (2020: margin performance in H2 compared to H1. schemes, and as a result business credit 22.9)%. With the transformation programme We are well positioned to take advantage of volumes remained robust. Negative trends now well progressed, we expect a strong the many opportunities which lie ahead. reversed to some extent towards the end of our improvement in the UK margin in the financial year with strengthening transaction year ahead. Revenue from ongoing activities in the UK and volumes as lenders reactivate programmes. Ireland was US$737m. Total and organic The new business pipeline has also been revenue declined (6)% at constant exchange encouragingly strong, setting us up well for rates. Both B2B and Consumer Services organic FY22. In particular, there is good demand for revenue declined (6)%. our open data solutions such as affordability and categorisation, and for our identity and This was a year of transformation in the UK and fraud management propositions, including Ireland and we made a lot of progress. While we CrossCore, and there have been new wins for have more to accomplish, it was encouraging to Experian Ascend. We also added many new see the region return to growth in Q4 and logos in the mid-market. deliver much-improved margin performance in H2 compared to H1. Our ambition in the region While Consumer Services also had a difficult is to simplify and modernise our technology year, with organic revenue down (6)%, we took

Total revenue growth2 Benchmark EBIT and Revenue split % Benchmark EBIT margin A. B2B: Data 49% US$m Margin % 2021 (6) B. B 2B: Decisioning 30% 2021 122 16.6 C. C onsumer Services 21% 2020 (2) 20203 173 22.9 A 2019 4 2019 230 28.3 2018 1 C 20181 235 29.8 2017 1 2017 246 30.5 B

Organic revenue growth Revenue by activity % Total Organic 2021 20203 growth2 growth2 2021 (6) US$m US$m % % 2020 (2) B2B: Data 361 367 (5) (5) B2B: Decisioning 220 227 (7) (7) 2019 4 Total B2B 581 594 (6) (6) 2018 0 Consumer Services 156 161 (6) (6) 1 Restated for IFRS 15. 2017 1 Total – ongoing activities 737 755 (6) (6) 2 At constant exchange rates. Exited activities 12 14 3 Revenue and Benchmark EBIT for FY20 have been re-presented for the reclassification to exited business Total UK and Ireland 749 769 activities of certain B2B businesses. Experian plc Annual Report 2021 61

EMEA/Asia Pacific Strategic report cloud-based technologies. We are rapidly introducing our global advanced B2B propositions, including Ascend, SaaS decisioning through PowerCurve, our open data solutions, and fraud and identity services. Revenue performance last year was significantly Ben Elliott impacted by reduced bureau volumes, CEO, Asia Pacific particularly during the initial phases of lockdown. The trajectory gradually improved as lockdowns eased in most markets but remained challenged in countries hardest hit by the pandemic, such as Our ambition in EMEA/Asia Pacific is to India. Clients were also hesitant to spend on concentrate our efforts where we can establish software implementations, delaying or cancelling a strong market presence and can operate at decisions, which particularly affected Asia Pacific. scale. We are pleased with the performance of Client activity has picked up in recent months, our recent bureau acquisitions in Germany and particularly in EMEA. Spain, which are opening up new opportunities for us to pursue across the region. We have got off to a strong start in our two new bureau acquisitions in Germany and Spain, both In EMEA/Asia Pacific, revenue from ongoing of which have performed well in the period activities was US$465m, with total revenue since acquisition. All our global platforms have growth at constant exchange rates of 7% and already been introduced and made available an organic decline of (14)%. The difference in Germany. In Spain, we now have two highly principally relates to the contribution from complementary bureau businesses, the our bureau acquisitions: Compuscan, the Risk integration of which is proceeding well, and we Management division of Arvato Financial are exploring ways to fully address the new Solutions, and Axesor. opportunity we have in the small and medium enterprise (SME) market. Our ambition in EMEA/Asia Pacific is to concentrate our efforts where we can establish The reduction in revenue affected our EBIT a strong market presence and can operate at performance. Benchmark EBIT from ongoing scale. The COVID-19 pandemic has opened up activities was US$(20)m (2020: US$12m) and some specific opportunities as many of our the Benchmark EBIT margin from ongoing clients are accelerating their adoption of activities was (4.3)% (2020: 2.8%).

Total revenue growth2 Benchmark EBIT and Revenue split % Benchmark EBIT margin US$m Margin % 2021 7 A. B2B: Data 62% 2021 (20) (4.3) B. B 2B: Decisioning 38% 2020 7 20203 12 2.8 A 2019 14 2019 3 0.7 2018 11 20181 5 1.3 2017 9 2017 (3) (0.9) B Organic revenue growth % Revenue by activity 2021 (14)

2020 (3) Total Organic 2021 20203 growth2 growth2 2019 14 US$m US$m % % B2B: Data 287 213 32 (8) 2018 11 B2B: Decisioning 178 214 (18) (20) 2017 9 Total – ongoing activities 465 427 7 (14) Exited activities 3 4 1 Restated for IFRS 15. Total EMEA/ 2 At constant exchange rates. Asia Pacific 468 431 3 Revenue and Benchmark EBIT for FY20 have been re-presented for the reclassification to exited business activities of certain B2B businesses. 62 Experian plc Strategic report

Financial review Resilience and a strong recovery

Summary Our focus this year has been to protect and support our people, clients and consumers. We have supported governments, businesses and communities during the pandemic through our data insights. We quickly transitioned the majority of our employees to work from home. We introduced flexible working and increased collaboration tools and support networks, such as mindfulness programmes, to help our people navigate the challenges of home working. Lloyd Pitchford Webinars and senior leadership vlogs helped us Chief Financial Officer connect. Our employees around the world have shown incredible resilience, commitment and flexibility during the COVID-19 pandemic and this is reflected in our results. Against the backdrop of the global We maintained operational capacity throughout pandemic we delivered a strong the pandemic, and are in a strong financial performance, growing total revenue3 position, with access to substantial funding, 7% at constant exchange rates. We ready to take advantage of the global pandemic recovery as it builds. generated US$1.5bn of cash with Benchmark operating cash flow up 22%.

We have focused on supporting our Highlights 2021 Statutory financial highlights people, clients and consumers Revenue 2021 2020 Growth throughout the COVID-19 pandemic, US$m US$m % using data as a force for good, US$5.4bn Revenue 5,372 5,179 4 helping to navigate the crisis. Operating profit 1,183 1,185 – Total revenue from ongoing Profit before tax 1,077 942 14 activities growth* Profit after tax from % continuing operations 802 679 18 7 Net cash inflow from (at constant FX) operating activities Organic revenue growth* – continuing operations 1,488 1,262 18 4% Full-year dividend (at constant FX) per share USc47.0 USc47.0 – Basic EPS USc88.2 USc74.8 18 Basic EPS USc 88.2 Benchmark financial highlights1 Constant Benchmark EPS* rates 2021 20202 growth USc US$m US$m % 103.1 Revenue3 5,357 5,161 7 Benchmark EBIT 1,386 1,387 3 Cash flow conversion* Benchmark PBT 1,265 1,255 5 % Benchmark 106 operating cash flow 1,476 1,214 24 *Alternative Performance Measures Undrawn committed We have identified and defined certain Ordinary dividends bank facilities 2,650 2,175 n/a non-GAAP measures. These are the key Benchmark EPS USc103.1 USc103.0 4 measures management uses to assess the US$427m underlying performance of our ongoing 1 See note 6 to the Group financial statements for definitions of businesses. There is a summary of these non-GAAP measures. 2 Results for FY20 are re-presented for the reclassification to measures on page 71 and a fuller explanation exited business activities of certain B2B businesses. in note 6 to the Group financial statements on 3 From ongoing activities. pages 160 to 161. Experian plc Annual Report 2021 63 Strategic report Performance summary Revenue Total Benchmark EBIT Commentary on revenue and Benchmark EBIT and Benchmark EBIT margin performance by region is provided earlier in the US$m US$m Margin % Strategic report, within the regional reviews on pages 58 to 61. 2021 5,372 2021 1,386 25.9 We report our financial results in US dollars. 2020 5,179 20201 1,387 26.9 The weakening of our other trading currencies during the year, primarily the Brazilian real 2019 4,861 2019 1,311 26.9 against the US dollar, reduced total revenue by 20182 4,584 20182 1,247 27.1 US$141m and Benchmark EBIT by US$56m. A ± 1% change in the Brazilian real or pound 2017 4,335 2017 1,199 27.6 sterling exchange rate would impact total revenue by ± US$5m or ± US$8m respectively. Benchmark EPS Dividend per share Benchmark EBIT from ongoing activities was US$1,385m (2020: US$ 1,386m), growing at 3% USc USc at constant currency, flat at actual exchange 2021 103.1 2021 47.00 rates. Benchmark EBIT margin from ongoing activities was 25.9% (2020: 26.9%), and was 2020 103.0 2020 47.00 adversely impacted by foreign exchange 2019 98.0 2019 46.50 movements by 20 basis points. 2 Details of the principal exchange rates used and 2018 94.4 2018 44.75 currency exposures are provided in note 10 to 2017 88.4 2017 41.50 the Group financial statements on page 169. 1 Results for FY20 are re-presented for the reclassification to exited business activities of certain B2B businesses. 2 Results for 2018 are restated for IFRS 15.

Revenue, Profit before tax and Benchmark EBIT margin by business segment

2021 20202 Total growth1 Organic growth1 US$m US$m % % Revenue Data 2,866 2,800 6 2 Decisioning 1,184 1,234 (3) (4) Business-to-Business 4,050 4,034 3 – Consumer Services 1,307 1,127 17 17 Ongoing activities 5,357 5,161 7 4 Exited business activities 15 18 n/a Total 5,372 5,179 6

Benchmark EBIT Business-to-Business 1,192 1,251 (1) Consumer Services 283 247 14 Business segments 1,475 1,498 2 Central Activities – central corporate costs (90) (112) n/a Ongoing activities 1,385 1,386 3 Exited business activities 1 1 n/a Total Benchmark EBIT 1,386 1,387 3 Net interest and non-benchmark items (309) (445) n/a Profit before tax 1,077 942 6

Benchmark EBIT margin – ongoing activities Business-to-Business 29.4% 31.0% Consumer Services 21.7% 21.9% Total Benchmark EBIT margin3 25.9% 26.9% 1 At constant exchange rates. 2 Revenue and Benchmark EBIT for FY20 are re-presented for the reclassification to exited business activities of certain B2B businesses and the reclassification of our Consumer Services business in Latin America to the Consumer Services business segment. Further information is provided in note 9 (b) to the Group financial statements. 3 Benchmark EBIT margin for ongoing activities is calculated by dividing Benchmark EBIT for ongoing activities by revenue from ongoing activities. 64 Experian plc Strategic report

Financial review continued

COVID-19 pandemic

Total revenue growth1 Total organic revenue growth1

12% 11% 12% 10% 10% 10% 10% 10% 10% 9% 9% 9% 9% 9% 10% 9% 8% 8% 8% 7% 7% 8% 7% 7% 7% 6% 6% 6% 5% 5% 4% 4%

2% 2% -1% -2% 0% 0%

-2% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19 FY20 FY21 FY19 FY20 FY21

Business-to-Business organic revenue growth1 Consumer Services organic revenue growth1

15% 25% 22% 22% 11% 20% 10% 9% 9% 9% 8% 17% 7% 6% 6% 15% 14% 5% 11% 10% 2% 10% 1% 1% 8% 8% -5% 6% 6% 0% 5% 5% 5%

-5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY19 FY20 FY21 FY19 FY20 FY21

1 From ongoing activities at constant exchange rates.

Business resilience We attribute this resilience to a variety of While the pandemic has inevitably had a Since its listing in 2006, Experian has factors: our portfolio diversity, a strong detrimental impact on some aspects of our consistently grown its organic revenue. As we innovation pipeline, our strategic investments, business, market trends have been catalysed reflect on our history, in the most significant aspects of our business being counter-cyclical, by the global crisis, providing new opportunities financial crises of the last 15 years – the and diversification of our markets by expanding for expansion in others. There has been COVID-19 pandemic and the global financial into new verticals, such as US automotive accelerated growth in the fraud management crash of 2008 – we have maintained that insurance. market, increased reliance on data and analytics and accelerated investment in digital positive trajectory. The COVID-19 pandemic has required us to platforms. This year we experienced a downward trend in adapt. We quickly transitioned our business Q1 as the COVID-19 pandemic unfolded and with the majority of our employees working We are ready to take advantage of the global global economic activity faltered. We saw from home, increasing security and pandemic recovery as it builds. significantly reduced volumes in relation to collaboration tools to provide a seamless unsecured lending across the globe with service to clients. regional volumes down in the quarter by We have continued innovation and product approximately 30%. As the year progressed investment throughout the period, to sustain volumes recovered and we returned to growth performance. in Q2, with quarterly total revenue growth thereafter near pre-COVID-19 levels and even We also acted quickly to support governments, accelerating in our Consumer Services businesses and communities during the business. pandemic through our data insights, helping to ensure financial support reached the people and businesses who needed it most. Experian plc Annual Report 2021 65 Strategic report Historic organic revenue growth performance1 (at constant FX)

15% Global Financial Crisis COVID-19 pandemic 10% 10% 9% 8% 8% 8% 8%

5% 5% 5% 5% 5% 4% 4% 3% 2% 1%

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

1 Ongoing activities.

Business-to-Business growth has been driven There was heightened consumer interest by ongoing strength in counter-cyclical revenue leading to good demand in credit education and streams, such as US mortgage, less susceptible identity monitoring services. We delivered to economic downturns. We delivered considerable growth in Consumer Services in expansion in key verticals and strengthened our Latin America, with revenue up 144% at position in employment and verification constant exchange rates, reflecting transaction services. We have continued the roll-out of our growth in eCred credit matching and strength in Ascend platform across further territories. our debt resolution service. These factors offset ongoing COVID-19 related We will continue to invest in propositions which weakness in credit reference volumes. While help those who are currently unbanked gain bureaux volumes are down year-on-year we access to affordable credit and wider financial saw improving trends as the year progressed services. and credit supply improved. We anticipate that strong growth will continue In Decisioning, performance in health and fraud in FY22 as the global economy recovers, with management was strong, though software projected high single-digit organic revenue delivery, particularly of on-premise solutions, growth for the year as a whole. has been hit by COVID-19. In Brazil we benefitted from increased contributions from positive data propositions and signed new multi-year agreements with our largest financial services clients. FY21 Revenue by customer1 Strength in Consumer Services was supported J A by ongoing expansion of our free membership I K base. We now have 110m consumer free H memberships. Experian Boost is helping people G instantly improve their credit scores. In the USA F we now have 6.7m unique account connections. E D We are encouraged by consumer reaction since B launching Boost in the UK in November 2020. C Boost is also stimulating activity for credit comparison services and generating referral % fees. A Financial services 38 B Direct-to-consumer 17 C Health 7 D Retail 5 E Software and Professional services 5 F Automotive 4 G Insurance 4 H Telecoms and Utilities 4 I Media and Technology 3 J Government and Public Sector 3 K Other 10

1 Revenue from ongoing activities. 66 Experian plc Strategic report

Financial review continued

Free member base million New and scaling products revenue US$m

22 40 57 82 110 108 213 359 537 678

B2C products – Lead generation – ID Works – Brazil consumer

USA B2B products – PowerCurve suite – Ascend Brazil – Health new products – Auto new products FY17 FY18 FY19 FY20 FY21 UK FY17 FY18 FY19 FY20 FY21 – CrossCore

Global cost profile % Benchmark operating cash flow US$m and cash flow conversion %

51 8 17 10 12 2 1,149 1,196 1,270 1,214 1,476

106% 97% 96% 96% 88%

Labour IT Data Marketing Other Central 1 Activities FY17 FY18 FY19 FY20 FY21 1 Restated for IFRS 15.

Capital summary US$m Capital expenditure (capex) as % of total revenue

FY17 FY18 FY19 FY20 FY21 1,600 Capex % 9 9 9 9 8 Reduction in Net debt Capex US$m 399 431 439 487 422 and other

20% 24% 28% 33% 40% 1,200 Acquisitions and minority 32% investments 31% 34% 31% 25% Funds from Operations* Development 800 48% 45% 38% 36% 35% Dividends Infrastructure Capital investment breakdown % FY17 FY18 FY19 FY20 FY21 Data

400 Organic capital investment

0 Cash generated Uses of cash * Funds from Operations is defined as Benchmark free cash flow plus organic capital investment (capital expenditure). Experian plc Annual Report 2021 67 Strategic report Operating efficiency Cash flow and Net debt summary1 Throughout the COVID-19 pandemic we have maintained operational capacity while taking a 2021 2020 balanced approach to cost management. We Year ended 31 March US$m US$m have not availed ourselves of any government Benchmark EBIT 1,386 1,387 furlough schemes. While there has been Amortisation and depreciation charged to Benchmark EBIT 453 413 increased amortisation and depreciation Benchmark EBITDA 1,839 1,800 reflecting previous investment in technology Impairment of non-current assets charged to Benchmark EBIT 6 – infrastructure, we have made reductions in Net capital expenditure (418) (483) discretionary spend to combat this, freezing Increase in working capital (13) (112) headcount and delaying non-critical investment. Principal lease payments (56) (55) We are rationalising our office footprint. Our Benchmark loss/(profit) retained in associates 12 (2) Future of Work programme is a global initiative Fair value gain on revaluation of step acquisition – (17) to create more modern, flexible and collaborative Charge for share incentive plans 106 83 ways of working while simultaneously reducing Benchmark operating cash flow 1,476 1,214 costs. Employees will have more choice in the Net interest paid (115) (152) way they work and be able to work flexibly, Tax paid – continuing operations (236) (286) remotely or from office hubs. Dividends paid to non-controlling interests (1) (2) We continue to invest in growth, increasing Benchmark free cash flow 1,124 774 marketing and customer acquisition Acquisitions (583) (700) expenditure, as we position ourselves to Purchase of investments (31) (95) emerge strongly from the pandemic. Disposal of investments 151 – Movement in Exceptional and other non-benchmark items (67) (18) Cash and liquidity management Ordinary dividends paid (427) (424) Net cash inflow/(outflow) – continuing operations 167 (463) This year, we continued to generate cash strongly, with a 106% (2020: 88%) conversion of Net debt at 1 April (3,898) (3,262) Benchmark EBIT to Benchmark operating cash Net share purchases 19 (188) flow, and Benchmark free cash flow of Discontinued operations – (6) US$1,124m (2020: US$774m). The continued Foreign exchange and other movements (114) 21 strength of our Benchmark operating cash flow Net debt at 31 March (3,826) (3,898) performance reflects the nature of our business 1 For Group cash flow statement see page 151. and financial model, and our focus on working capital management. We have successfully improved collections, recovering receivables Reconciliation of net capital expenditure that had increased towards the end of FY20 due to the impact of COVID-19. 2021 2020 Year ended 31 March US$m US$m Capital expenditure as reported in the Group cash flow statement 422 487 Funding Disposal of property, plant and equipment (1) (5) During the year we issued two bonds of £400m (Loss)/profit on disposals of fixed assets (3) 1 each which mature in 2025 and 2032, extending Net capital expenditure as reported in the cash flow and the life of our longest debt by 25 months. We took Net debt summary 418 483 advantage of prevailing markets to secure additional long-term funding for the Group and the and did not breach this covenant given on expenditure, acquisitions and net investments. borrowings during the year under review or latest issue was at a coupon rate of 0.739%. At 31 The acquisition of our majority stake in the the prior year. March 2021, 56% (2020: 43%) of our total Risk Management division of Arvato Financial borrowings falls due in over five years, and our Solutions was satisfied by 7.2m Experian undrawn committed bank borrowing facilities Disciplined capital management plc shares. were US$2.7 bn (2020: US$2.2bn). Our capital allocation framework is based on The chart opposite shows our capital summary balancing a number of competing priorities – We keep our debt levels stable at a low multiple as executed this year. of our profits. Net debt at 31 March 2021 was notably operating and capital investment, US$3,826m (2020: US$3,898m), 2.1 times dividends, acquisitions and share repurchases Capital expenditure – while targeting Net debt within the range of Benchmark EBITDA and 2.2 times Benchmark Our capital expenditure of US$422m (2020: EBITDA when measured on the frozen GAAP 2.0 to 2.5 times Benchmark EBITDA. The mix between these categories will vary over time, US$487m) was 8% (2020: 9%) of revenue. The basis we use for our debt covenant. Our target reduction was due to exchange and where we range is 2.0 to 2.5 times. and in FY21 we suspended our share repurchase programme due to uncertainties took a disciplined approach to prioritising The covenant on our banking facilities requires surrounding COVID-19. investments. that Benchmark EBIT should cover net interest Digitisation and customer expectations of how expense before financing fair value We assess acquisition opportunities against a range of metrics, including economic valuations we deliver data are increasing. We continue to remeasurements by three times. At 31 March invest to drive innovation and bring the latest 2021, this coverage ratio was 11 times (2020:11 and the earnings enhancement we expect them to bring relative to share repurchases. Total technologies to our clients, with emphasis on times). We have no undue concentration of automation and tools to improve efficiency, repayment obligations in respect of borrowings investment of US$881m (2020: US$1,278m) comprised cash flows for net capital speed and effectiveness. 68 Experian plc Strategic report

Financial review continued

Acquisitions

Our acquisition cash outflow was US$583m digital online identities, for US$290m. We also We have recognised a non-current financial (2020: US$700m). We completed a number of acquired the whole of the issued share capital liability of US$208m for put options in respect acquisitions in the year, including a 60% stake of BrScan Processamento de Dados e of acquisitions made this year. in the Risk Management division of Arvato Tecnologia Ltda (BrScan) for US$132m. In April 2021, we completed two further Financial Solutions for 7.2m Experian plc Acquisitions were in the Business-to-Business acquisitions in the USA to bolster our income shares, which were valued at US$253m on segment and contributed US$117m to revenue verification business: Tax Credit Co., LLC and completion. and US$28m to Benchmark EBIT in the year, Employment Tax Servicing, LLC. We acquired the whole of the issued share with annualised pro-forma revenue of capital of Tapad, Inc. a leader in resolution of US$246m.

Arvato Risk Management Tapad BrScan This investment expands our A leading provider in digital identity A market leader in fraud and bureau presence in EMEA and resolution for marketers helping to identity solutions in Brazil. extends our range of risk, anti-fraud connect brands to consumers, and identity management services primarily in the USA. across Germany, Austria and Switzerland.

Corporate Cost Control Axesor businesses Brain Soluções de Tecnologia A leading provider of workforce One of the largest independent Digital solutions in the USA expanding business information bureaux in The 55% investment enables us our verification services offering. Spain, complementing our existing to expand our share of the consumer information business. Brazilian Agri credit market.

We continue to invest in smaller start-ups and Associates and venture investments FinTech companies, to boost innovation and advance our intellectual property. We completed Associates Venture Total ten investments in our venture programme in FY21, bringing our total venture programme Current invested US$128m US$176m US$304m financing to US$176m. capital During the year we disposed of our interest in Finicity Corporation, recognising a gain on Number of portfolio 9 25 34 disposal of US$120m, and in the year ahead companies we expect to realise further gains. Following a favourable trading performance New deals – 10 10 we reversed the associate impairment charge closed this year of US$23m booked in FY20. Experian plc Annual Report 2021 69 Strategic report Interest Reconciliation of Benchmark EBIT to statutory profit before tax Benchmark net finance costs decreased by US$11m reflecting a reduction in market 2021 20201 interest rates and average borrowing levels. Year ended 31 March US$m US$m Benchmark EBIT from ongoing activities 1,385 1,386 A reduction in foreign exchange losses on Exited business activities 1 1 Brazilian real intra-Group funding of US$38m, Benchmark EBIT 1,386 1,387 and other fair value remeasurements, contributed to the decrease in statutory net Net interest expense (121) (132) finance costs of US$130m. At 31 March 2021, Benchmark PBT 1,265 1,255 interest on 91% of our net funding was at fixed Exceptional items 35 (35) rates (2020: 67%). Other adjustments made to derive Benchmark PBT (note 14(a)) (223) (278) Profit before tax 1,077 942

Taxation 1. Results for FY20 are re-presented for the reclassification to exited business activities of certain B2B businesses. Our total tax charge was US$275m (2020: US$263m) and our effective tax rate on Benchmark PBT was 25.9% (2020: 25.8%), Cash tax reconciliation reflecting the mix of profits and prevailing tax rates by territory. We expect that our effective 2021 2020 Year ended 31 March % % tax rate on Benchmark PBT in FY22 will be in the range of 26% to 27%. Tax charge on Benchmark PBT 25.9 25.8 Tax relief on goodwill amortisation (2.6) (3.1) The equivalent cash tax rate remains below our Benefit of brought forward tax losses (2.0) (1.3) Benchmark tax rate and we provide a Other (2.6) 1.4 reconciliation in the table opposite. Other Tax paid as a percentage of Benchmark PBT 18.7 22.8 differences include an acceleration of tax deductions as a result of US legislative changes in the year. We anticipate that our cash tax rate 1 will increase and move closer to our Dividend history (USc) Payout ratio (%) Benchmark tax rate over the course of the next three years, as tax amortisation of goodwill on 50 47% 46% 46% earlier acquisitions and prior tax losses are 46% utilised. 47% 41% 45% 40 41% Earnings per share 41% 41% Basic EPS was 88.2 US cents (2020: 74.8 US 30 40% cents). Basic EPS was reduced by 14.9 US cents 34% per share (2020: 28.2 US cents per share) in 32% 31% respect of discontinued operations, Exceptional 20 28% items and other adjustments made to derive

Benchmark PBT. Dividend per share (US cents) 10 First interim dividend Benchmark EPS was 103.1 US cents (2020: 103.0 US cents), an increase of 4% at constant 0 exchange rates and flat at actual rates. A ± 10% FY07 FY09FY08 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Second interim dividend change in the Brazilian real exchange rate 1 Payout ratio is dividend per share as a proportion of Benchmark EPS. would impact Benchmark EPS by ± 1 US cents. There would be no impact on Benchmark EPS The dividend in FY21 has been held level with from a similar change in the pound sterling Dividends and distributable reserves the prior year in line with our policy. exchange rate. We provide further information Our dividend policy aims to increase dividends, in note 18 to the Group financial statements broadly in line with the underlying growth The total dividend per share for the year is on page 175. in Benchmark EPS over time. This aligns covered 2.2 times (2020: 2.2 times) by shareholder returns with our underlying Benchmark EPS. Ordinary dividends paid in the Share capital profitability. year amounted to US$427m (2020: US$424m). In FY21 we suspended our share repurchase In the past five years we have returned over Experian plc and the UK entity responsible for programme due to uncertainties surrounding US$2bn to shareholders by dividend and over distributing dividends under the Group’s Income COVID-19. During the year, the average number US$1.3bn via net share purchases. Access Share arrangements have significant of shares in circulation was 910m (2020: 902m) We expect to execute share purchases of up to distributable reserves, which at 31 March 2021 and the closing number of shares at 31 March US$150m in the coming year, which will mainly were US$18.2bn and US$12.0bn respectively. 2021 was 914m (2020: 901m). The increase in offset deliveries under employee share plans. See note K to the Company financial statements the year is attributable to shares delivered as for further detail. acquisition consideration and shares issued on The Board has announced a second interim vesting of employee share incentive plans. dividend of 32.5 (2020: 32.5) US cents per share, giving a total dividend for the year of 47.0 (2020: 47.0) US cents per share. 70 Experian plc Strategic report

Financial review continued

Net assets and ROCE summary ROCE

2021 2020 2019 % Year ended 31 March US$m US$m US$m Goodwill 5,261 4,543 4,324 2021 15.0 Other segment assets 3,756 3,344 2,957 2020 16.1 Total segment assets 9,017 7,887 7,281 Segment liabilities (2,043) (1,723) (1,541) 2019 15.9 Operating segments – net assets 6,974 6,164 5,740 20182 15.5 Central Activities – net assets 388 307 300 Deduct: non-controlling interests (38) (6) (14) 2017 15.5 Capital employed 7,324 6,465 6,026 1 For definition of ROCE see ‘Non-GAAP measures’ on page 161. Net debt (3,826) (3,898) (3,275) For FY21 the return used in the calculation of ROCE is based on Benchmark EBIT of US$1,386m and a Benchmark tax rate Tax (417) (292) (271) of 25.9%. Add: non-controlling interests 38 6 14 2 Restated for IFRS 15. Net assets 3,119 2,281 2,494 Average capital employed 6,849 6,383 6,094 ROCE1 15.0% 16.1% 15.9%

Net assets and ROCE Goodwill Goodwill represents 52% of total included in current tax liabilities in relation to Operating segment net assets increased by assets. We test for impairment of goodwill at these judgmental areas. If the resolution of all US$810m in the year as a result of acquisitions. least annually by performing a value-in-use these uncertainties was ultimately adverse, calculation for each cash-generating unit we may be required to pay an amount of up to ROCE for the year ended 31 March 2021 (CGU), which is based on cash flow projections US$166m (2020: US$163m) in addition to that reduced to 15.0% (2020: 16.1%) largely due to with assumptions updated for the impacts currently provided. Future tax charges and our the effect of acquisitions completed part way of COVID-19. effective tax rate may be affected by tax regime through the year. ROCE is a post-tax measure Following our evaluation this year the carrying reforms in our key markets as well as resolution and we use our Benchmark tax rate for ease of value of the Asia Pacific CGU has been reduced of open matters as we continue to bring our tax calculation. to its recoverable amount through recognition of affairs up to date. a US$53m impairment charge. Deciding whether to recognise deferred tax Financial risk management These estimates are, by nature, subject to assets is a financial judgment. Assets are only The key financial risks specific to our business uncertainty and the key assumptions used by recognised when we consider it probable that are set out in the Risk management section on each CGU, and sensitivities, are set out in note they can be recovered based on forecasts of pages 72 – 80. We continue to monitor closely 20 to the Group financial statements. future profits, against which those assets may the impact of COVID-19 on our business and the be utilised. Useful life of intangible assets Our business is global economy. Our priority remains the health, subject to technological change and competition. The Group is subject to challenge by the safety and well-being of our employees, clients We currently amortise non-acquisition Brazilian and Colombian tax authorities on the and consumers. intangibles over a period from three to ten deduction for tax purposes of goodwill While the UK’s departure from the EU has not years, with the average life being five years. If amortisation. Further information on the had a significant impact on our business, there the useful life of our databases and internal contingency is provided in note 43 to the is ongoing uncertainty related to Brexit and the use/internally generated software either Group financial statements. longer-term effect on trade, cross-border data increased or decreased by one year, the impact Pensions The Group is exposed to a number of regulations and legislative arrangements. We on the annual amortisation charge would be a risks inherent in defined benefit pension plans, continue to monitor this risk. decrease of US$53m or an increase of US$76m as outlined in note 34(d) to the Group financial respectively. statements. The principal financial assumption We have identified unpredictable financial used in determining the carrying value of markets or fiscal developments as a principal We have recognised an impairment charge in pension assets/obligations is the real discount risk, including evolving tax laws and the the year of US$33m which largely relates to an rate. If this rate increased/decreased by 0.1%, resolution of uncertainties relating to prior-year internally generated software asset identified defined benefit obligations at 31 March 2021 tax liabilities. Detailed narrative disclosures are as requiring impairment due to the planned would change by approximately ± US$21m contained in note 7 to the Group financial upgrade of our technology estate. offset by a change in the fair value of plan statements on pages 161 – 162, with further Taxation We are subject to tax in numerous assets of approximately ± US$20m. numeric disclosures for foreign exchange, jurisdictions and have a number of open tax interest rate and credit risk in notes 10, 15, 24 returns with various tax authorities. It can Litigation There continue to be a number of and 30 respectively. take many years to agree an outcome with litigation and other claims across all our major a tax authority, as there are transactions in regions. We do not consider that the outcome of Critical estimates and judgments the ordinary course of business for which the any such claims will have a materially adverse effect on our financial position. The Group is subject to a number of risks and ultimate tax determination is uncertain. Our uncertainties which require us to make key uncertainties relate to the deductibility of estimates and judgments. Areas involving purchased goodwill, inter-company trading significant uncertainty are: and financing. US$350m (2020: US$327m) is Experian plc Annual Report 2021 71 Strategic report Exceptional items and other adjustments made to derive Benchmark PBT We make certain adjustments to derive Benchmark PBT. These are summarised in the table below. Note 6 to the Group financial statements explains the reasons for the exclusion from our definition of Benchmark PBT of Exceptional items and other adjustments made to derive Benchmark PBT. 2021 2020 Year ended 31 March US$m US$m Exceptional items: Profit on disposal of associate (120) – Restructuring costs 50 – Impairment of intangible asset 27 – Legal provisions movements 8 35 Net (credit)/charge for Exceptional items (35) 35 Other adjustments made to derive Benchmark PBT: Amortisation of acquisition intangibles 138 124 Impairment of goodwill 53 – Acquisition and disposal expenses 41 39 Adjustment to the fair value of contingent consideration 1 (4) Non-benchmark share of post-tax profit of associates (16) (6) Interest on uncertain tax provisions 11 14 Financing fair value remeasurements (5) 111 Net charge for other adjustments made to derive Benchmark PBT 223 278 Net charge for Exceptional items and other adjustments made to derive Benchmark PBT 188 313

Further information on Exceptional items is provided in note 14 to the Group financial statements on page 171.

Non-GAAP measures We have identified and defined certain non-GAAP measures as the key measures used by management to assess the underlying performance of the Group’s ongoing businesses. The table below summarises these measures and there is a fuller explanation in note 6 to the Group financial statements on pages 160 to 161. Benchmark PBT Profit before amortisation and impairment charges, acquisition expenses, Exceptional items, financing fair value remeasurements, tax (and interest thereon) and discontinued operations. It includes the Group’s share of continuing associates’ Benchmark post-tax results. Benchmark EBIT Benchmark PBT before net interest expense. Benchmark EBITDA Benchmark EBIT before depreciation and amortisation. Exited business activities The results of businesses sold, closed or identified for closure during a financial year. Ongoing activities The results of businesses which are not disclosed as exited business activities. Constant exchange rates Results and growth calculated after translating both years’ performance at the prior year’s average exchange rates. Total growth This is the year-on-year change in the performance of Experian’s activities at actual exchange rates. Organic revenue growth This is the year-on-year change in the revenue of ongoing activities, translated at constant exchange rates, excluding acquisitions until the first anniversary of their consolidation. Benchmark earnings Benchmark PBT less attributable tax and non-controlling interests. Total Benchmark earnings Benchmark PBT less attributable tax. Benchmark EPS Benchmark earnings divided by the weighted average number of ordinary shares. Benchmark operating cash flow Benchmark EBIT plus amortisation, depreciation and charges for share-based incentive plans, less net capital expenditure and adjusted for changes in working capital, principal lease payments and the Group’s share of the Benchmark profit or loss retained in continuing associates. Cash flow conversion Benchmark operating cash flow expressed as a percentage of Benchmark EBIT. Return on capital employed (ROCE) Benchmark EBIT less tax at the Benchmark rate divided by average capital employed, in continuing operations, over the year. Capital employed is net assets less non-controlling interests, plus/minus the net tax liability or asset and plus Net debt. 72 Experian plc Strategic report

Risk management Identifying and managing risk

Identifying and managing risk is key to our business. Doing so helps us deliver long-term shareholder value and protect our business, people, assets, capital and reputation.

Our risk management governance structure

Board

Sets our overarching risk appetite and ensures that we manage risks appropriately across the Group. The Board delegates oversight of risk management activities to the Audit Committee.

Audit Committee

Regularly monitors the principal risks and uncertainties identified by our risk assessment processes, with the strategies we have developed and the actions we have taken to mitigate them. Management also continually reviews the effectiveness of our risk management system and internal control systems, which support our risk identification, assessment and reporting.

Executive Risk Management Committee (ERMC)

Comprises senior Group executives, including the executive directors and the Company Secretary. It oversees how we manage global risks.

Risk Management Committees

Security and Assurance Steering Tax and Treasury Global and Regional Regional Continuity Steering Committee (ASC) Committee Strategic Project Risk Management Committee (SCSC) Committees Committees (RRMC)

is a sub-committee of is a sub-committee of oversees management of ensure that we oversee management of the ERMC. Its primary the ERMC and oversees financial risks, including appropriately resource regional risks and feed responsibility is to the development and tax, credit, liquidity, our strategic projects, up to the ERMC. oversee management implementation of the funding, market and and that they are of global information Group’s assurance currency risks. risk-assessed, and security, physical security, framework. commercially and and business continuity technically appraised. risks. The committees’ conclusions are then considered by the Board or relevant Group Principal Operating Subsidiary for approval.

Group Operating Committee (OpCo)

The Group Operating Committee comprises our most senior executives. Its remit includes identifying, debating and achieving consensus on issues involving strategy, risk, growth, people and culture, and operational efficiency. Its meetings generally focus on the key issues facing our Group.

Executive management

Our executive management takes day-to-day responsibility for implementing the Board’s policies on risk management and internal control. It designates who is responsible and accountable through the design and implementation of all necessary internal control systems, including policies, standards and guidance. Experian plc Annual Report 2021 73 Strategic report

Our risk management process

The Board is responsible for maintaining We follow the Three Lines of Defence Risk categories and reviewing the effectiveness of our risk approach to risk management. Risks are Strategic risk Regulatory/ management activities from a strategic, owned and managed within the business – Country/Political/ Compliance risk financial, and operational perspective. and reviewed by our businesses at least Economic – Regulated activities These activities are designed to identify and quarterly. Global governance teams review – Acquisition – Privacy manage, rather than eliminate, the risk of risks and controls, including those relating – Competitor – Financial crime failure to achieve business objectives or to to information security, compliance and – Business strategy successfully deliver our business strategy. business continuity. Global Internal – Publicity Operational risk Audit assesses our risks and controls – Technology The risk management process is designed independently and objectively. The results Financial risk – Inf ormation security to identify, assess, respond to, report on and of these reviews feed into our reporting cycle, – Accounting – Physical security monitor the risks that threaten our ability to including through the risk management – Credit – Continuity achieve our business strategy and objectives, governance structure outlined opposite. – Liquidity – Third party within our risk appetite. – Market – People – Currency – Process

Step 1 Step 2 Step 3 Step 4 Risk identification Risk assessment Risk response Risk reporting & monitoring

Consider key business Assess controls Accept or remediate Business unit and objectives Estimate likelihood, current risk and control regional level  Identify principal risks impact and velocity environment RRMCs and ERMC  Identify key controls Consider legal, reputation Determine corrective Audit Committee and conduct exposure action if needed

Three Lines of Defence

Audit Committee

Executive management / Risk Management Committees

First Line of Defence Second Line of Defence Third Line of Defence

Lines of business (regional Global Risk Management Global Internal Audit and global) Global Security Office Experian IT Services (EITS) Compliance Corporate functions Business Continuity Physical Security Legal

All employees have First Line Governance teams have Global Internal Audit has responsibilities Second Line responsibilities Third Line responsibilities 74 Experian plc Strategic report

Risk management continued

Our risk profile Our risk identification processes follow a dual Principal risk profile approach: A bottom-up approach at a business unit or Business conduct risk Adverse and unpredictable country level. This identifies the risks that financial markets or fiscal threaten an individual business unit activity. Failure to comply with developments To provide visibility of issues across the laws and regulations Loss or inappropriate use business, we consolidate these risks at a of data and systems Non-resilient IT/business regional and global level, then escalate to environment New legislation or changes the Risk Management Committees. in regulatory enforcement A top-down approach at the global level. This identifies the principal risks that threaten the delivery of our strategy Undesirable investment Increasing competition (see below). The diagram on this page IMPACT outcomes summarises our principal risk profile and Dependence on highly trends in the threat levels (on a net/residual skilled personnel risk basis) since the last reporting period. Compared to last year, the principal risks remain the same (we have removed ‘data ownership, access and integrity’ as a standalone risk due to overlap with other risks, and the associated risk information LIKELIHOOD is covered in other risk descriptions). Risk movement: Increasing Decreasing Stable Our strategic focus areas 1 Mak e credit and lending simpler, faster governance process reinforces and facilitates Some of the emerging risks we are currently and safer for consumers and businesses appropriate ownership, accountability, considering include: 2 Empo wer consumers to improve their escalation and management of our principal ESG matters: we continue to develop our ESG financial lives risks. This process includes: well-defined roles programme to address different aspects. 3 Help businesses verify identity and and responsibilities across our Three Lines

combat fraud of Defence model; assigning accountability The Group has committed to becoming 4 Help organisations in specialised vertical for risk-taking when making key business carbon neutral in its own operations by 2030 markets harness data and analytics to make decisions; documenting clear boundaries and has also developed its alignment to the smarter decisions and behavioural expectations in policies and Task Force on Climate-Related Financial standards; and creating an environment that 5 Enable businesses to find, understand Disclosures (TCFD) reporting framework. reinforces adherence and accountability. and connect with audiences Experian will be required to report its environmental disclosure aligned to the TCFD Risk appetite Current areas of focus framework from FY22 (Annual Report 2022) We assess the level of risk and our associated Our risk landscape continues to change as both onwards, however our TCFD statement in risk appetite to ensure we focus appropriately business and regulatory environments evolve. this year’s annual report (see page 53) on those risks we face. We target risks for While COVID-19 has not led us to change our already covers most of the required TCFD assessment based on gross risk and measure risk management framework or processes, we disclosure. The Group has an Environmental them based on net risk using a risk and control have ensured that the impacts of the pandemic Policy in place to address related matters, assessment methodology. We then prioritise are considered across all our principal risks. We and an Environmental Management System them for mitigation. The Board and Audit make references to COVID-19 in future sections. (EMS) designed to ISO 14001 standards that allows us to measure and monitor our direct Committee review the principal risks, of which Our focus in the current year was to continue environmental impact. there are currently nine, on an ongoing basis, as getting more proactive in the identification and does the ERMC. The Board has defined risk management of our principal risks through a We continue to focus on People and Diversity appetites for certain principal risks that we face combination of best-in-class risk practices, matters, including setting gender targets (see during the normal course of business. We use a greater engagement across the Three Lines of page 49). We also continue to engage with variety of information sources to show if we are Defence and increased use of data and investors and clients to address their working within our tolerance for these risks and analytics. While we have made good progress in expectations. whether or not any of them require additional all these focus areas, we would expect similar executive attention. areas of focus to continue in the upcoming Accelerating privacy regulation: regulators fiscal year. We are currently undertaking an are becoming more active in interpreting Our risk culture external review of our operational risk and enforcing privacy regulations across The Board is committed to maintaining a management programme to ensure it is existing regulations, and proposing new and culture that emphasises the importance of keeping pace with our evolving risk profile. more stringent privacy regulations in others. managing risk and encourages transparent We closely monitor these developments In addition to known principal risks, we continue and timely risk reporting. We work to align and interact with regulators, legislators and to identify and analyse emerging ones, and employees’ behaviours, attitudes and incentives other stakeholders to provide input. discuss these, as appropriate, in different forums, with our risk appetite and other governance including the ERMC and Audit Committee. and risk management policies. Our risk Experian plc Annual Report 2021 75

Principal risks An example of increased fraudulent activity is Strategic report The following pages summarise our principal Loss or inappropriate the incident we experienced in South Africa this risks and uncertainties with mitigating actions use of data and systems year where we concluded an agreement for for each and related trends in the risk services with an individual fraudulently We hold and manage sensitive consumer environment, as identified by the Board for the impersonating a representative of a legitimate information that increases our exposure year ended 31 March 2021. company seeking access to marketing data. and susceptibility to cyber-attacks or other While no personal consumer credit, financial or The list is not exhaustive and may change unauthorised access to data, either directly banking information was shared by Experian during the next financial year, as the risk through our online systems or indirectly and none of our infrastructure, systems or landscape evolves. through our partners or third-party databases were compromised, this highlights contractors. COVID-19 continues to be a consideration in the increased risks related to unauthorised access to data. In response to this incident, we several of our principal risks. We continue to Part of the viability assessment seek to mitigate the impact of COVID-19 and provided support to affected consumers and Risk type Risk movement businesses, engaged third parties to assist in remain focused on the health, safety and – Operational Stable well-being of our employees, clients and our analysis and response, and have consumers. strengthened our organisational protocols and business processes to prevent this sort of fraud, Potential impact In order to assess our Group’s viability, the including new client onboarding controls, new directors focused on three principal risks Unauthorised access to consumer data could data transfer protocols, and organisational that are critical to our success. These are cause problems for consumers and result in changes to increase our privacy compliance summarised below and discussed in more material loss of business, substantial legal activities. detail in the Viability assessment section liability, regulatory enforcement actions and/or following the description of our principal risks. significant harm to our reputation. The impact In response to cyber risks, we continue to of this risk, if it materialises, will typically be felt enhance our protection, detection and response Loss or inappropriate use of data or in the near term. capabilities by strengthening our security systems leading to serious reputational policies, practices and training and continue to and brand damage, legal penalties and Examples of control mitigation ensure that we apply them consistently across class action litigation. We deploy physical and technological our regions and business units. We will continue Adverse and unpredictable financial markets security measures, combined with investing in the tools, people, resources and or fiscal developments in one of our major monitoring and alerting for suspicious initiatives necessary to maintain and improve countries of operation, resulting in significant activities. our global information security programme. economic deterioration, currency weakness We maintain an information security With COVID-19 and while we consider our or restriction. programme with strong governance for longer-term strategy for the future of work New legislation or changes in regulatory identifying, protecting against, detecting location, we continue to monitor the impact of enforcement, changing how we operate and responding to cyber security risks and most of our employees and third parties our business. recovering from cyber security incidents. working remotely, including any potential We impose contractual security exposure to vulnerabilities. We have taken requirements on our partners and other third technical measures to restrict, secure and parties that use our data, complemented by monitor devices, and added compliance periodic reviews of third-party controls. requirements for employees and third parties, We maintain insurance coverage, where especially those handling sensitive information. feasible and appropriate. Responsibility Our Global Security Office sets policies and standards related to the information security programme. Every employee is ultimately responsible for following security policies and protocols. Changes this year External cyber security threats to businesses continue to increase in number and scale. We have also seen an increase in fraudulent activity seeking access to data. In addition, the inherent risk level of data exposure has also increased, particularly with respect to data that has not traditionally been considered sensitive or ‘personally identifiable’. 76 Experian plc Strategic report

Principal risks continued

The impact of this risk, if it materialises, will Any changes to the US, UK and Brazil corporate Adverse and unpredictable typically be felt in the short to long term. tax rates would result in a change to our effective tax rate and cash tax payments. In the financial markets or fiscal Examples of control mitigation USA, the new administration may consider tax developments We have a diverse portfolio by geography, reform proposals which could involve changes We operate globally and our results could product, sector and client. We provide to the Tax Cuts and Jobs Act or the corporate be affected by global, regional or national counter-cyclical products and services. federal income tax rate. In the UK, it has been changes in fiscal or monetary policies. We convert cash balances in foreign announced that the corporation tax rate will currencies into US dollars. increase from 19% to 25% from 1 April 2023. A substantial change in credit markets in We fix the interest rates on a proportion of Experian continues to monitor these the USA, Brazil or the UK could reduce our borrowings. developments closely. our financial performance and growth potential in those countries. We retain internal and external tax professionals, who regularly monitor New legislation or changes We present our Group financial statements developments in international tax and in US dollars. However, we transact assess the impact of changes and in regulatory enforcement business in a number of currencies. differing outcomes. We operate in an increasingly complex Changes in other currencies relative to We review contingency plans in our key environment and many of our activities the US dollar affect our financial results. markets as to specific potential responses and services are subject to legal and A substantial rise in US, EU or UK interest to evolving financial conditions. regulatory influences. New laws, new rates could increase our future cost of interpretations of existing laws, changes borrowings. Responsibility to existing regulations and heightened Our corporate and business unit finance regulatory scrutiny could affect how we We are subject to complex and evolving functions monitor our external landscape, operate. For example, regulatory tax laws and interpretations, which may and interface with business units to develop interpretation of complex, principles-based change significantly. These changes may and implement appropriate actions. privacy regulations could affect how we increase our effective tax rates in the collect and process information for future. Uncertainty about the application Changes this year marketing, risk management and fraud of these laws may also result in different We continue to analyse the impact of potential detection. outcomes from the amounts we economic downturn and associated actions, provide for. particularly in our key markets. Some of the Part of the viability assessment We have a number of outstanding tax underlying risk vectors are improving, while Risk type Risk movement matters and resolving them could have others have future uncertainty associated with – Strategic Increasing a substantial impact on our financial them, as detailed below and so this will – Regulatory/ statements, cash and reputation. continue to remain an area of focus. Compliance

Part of the viability assessment The global economy is expected to expand in – Operational the mid-single digits during 2021, following a Risk type Risk movement contraction of 4.3% in 20201. This will likely – Financial Increasing Potential impact positively impact areas of the business which experienced difficult trading conditions during We may suffer increased costs or reduced revenue resulting from modified business Potential impact the previous year. practices, adopting new procedures, The US, Brazilian and UK markets are We continue to perform analyses to understand self-regulation and litigation or regulatory significant contributors to our revenue. the impact of changes in economic conditions actions resulting in liability, fines and/or on Group revenues and have considered A reduction in one or more of these consumer changes in our business practices. The impact different economic scenarios in our viability and business credit services markets could of this risk, if it materialises, will typically be assessment. reduce our revenue and profit. felt in the short term. Serasa S.A. has been successful in its Examples of control mitigation We benefit from the strengthening of currencies challenges against the Brazilian tax authorities We use internal and external resources relative to the US dollar and are adversely for the deduction of the initial goodwill to monitor planned and realised changes affected by currencies weakening relative to it. amortisation arising from its acquisition by in legislation. We have outstanding debt denominated Experian in 2007, however there are some remaining matters that are yet to be resolved. We educate lawmakers, regulators, principally in euros, pounds sterling and consumer and privacy advocates, industry US dollars. As this debt matures, we may The Colombian Tax Authority has raised a trade groups, our clients and other need to replace it with borrowings at higher similar challenge on the deductibility of stakeholders in the public policy debate. interest rates. goodwill in respect of the 2014 and 2016 Our global Compliance team has Our earnings could be reduced and tax tax years. region-specific regulatory expertise and payments increased as a result of settling Historic UK tax disputes continue to be works with our businesses to identify and historical tax positions or increases in tax rates. discussed with Her Majesty’s Revenue & adopt balanced compliance strategies. We execute our Compliance Management Adverse publicity around tax could damage Customs. Programme, which directs the structure, our reputation. documentation, tools and training requirements to support compliance on an ongoing basis.

1 World Bank, 5 January 2021. Experian plc Annual Report 2021 77

Responsibility The proposed India Personal Data Privacy Responsibility Strategic report Our Legal, Government Affairs and Compliance (PDP) Bill is still being analysed by a Joint Our Legal and Compliance functions work with functions work with our business units to Parliamentary Committee (JPC). At this point our business units to understand the impact understand the impact of relevant laws it is unclear whether the bill will be taken of relevant laws and regulations, including and regulations, including any regulatory up or tabled, so there is no clarity on any regulatory interpretations and associated interpretations and associated implications. implementation dates. implications. Our business units put into place The business units put into place appropriate Related to COVID-19, we continue to monitor for appropriate procedures and controls designed procedures and controls designed to additional rules and regulations related to the to ensure compliance. ensure compliance. reporting of data. Changes this year Changes this year We have faced increased regulatory scrutiny, New laws, new interpretations of existing laws, Failure to comply with and regulatory and government enquiries and changes to existing regulations and regulatory laws and regulations investigations in several jurisdictions. The laws scrutiny continue to be considered and and regulations to which we are subject are introduced, with a global focus on privacy and a We hold and manage sensitive consumer complex, and in many cases principles-based. general trend towards more consumer control information and we must comply with Compliance with these laws and regulations over data. Many of these laws and regulations many complex privacy and consumer continues to get more challenging as are complex and principles-based, leading to protection laws, regulations and interpretations may differ among regulators, actual and potential differences in how contractual obligations. and as changes in the regulatory environment regulations are interpreted and enforced after evolve. they become effective in many of the Risk type – Regulatory/ In the UK, the UK Information Commissioner’s jurisdictions we operate in. In some cases these Compliance Office (ICO) issued its final Enforcement Notice differences in interpretations may have to be Risk movement (EN) on 12 October 2020. We disagree with the decided in the courts. – Operational Increasing ICO’s interpretation of the EU General Data We highlight some significant updates below: Protection Regulation (GDPR) and have filed our Potential impact appeal, which will be heard at the end of In the USA, California voters recently approved a November 2021. We have also seen closer ballot initiative to enact the California Privacy Non-compliance may result in material contact by the Financial Conduct Authority (FCA) Rights Act (CPRA). The CPRA will become litigation, including class actions, as well as during the COVID-19 pandemic. effective on 1 January 2023, with the California regulatory actions. These could result in civil Consumer Privacy Act (CCPA) remaining in or criminal liability or penalties, damage to In the USA, we are subject to ongoing regulatory effect through that date. The CPRA further our reputation or significant changes to parts supervision by the Consumer Financial enhances the CCPA by creating a new privacy of our business. The impact of this risk, if Protection Bureau (CFPB), and for some regulatory agency with expanded enforcement it materialises, will typically be felt in the matters by other regulators such as the New and rulemaking authority, new consumer rights near term. York Department of Financial Services (DFS). of data correction, expansion of opt-out rights, Examples of control mitigation Over the past year, the number of US class and increased disclosures and opt-out rights action lawsuits have decreased slightly, regarding sensitive information, among other We maintain a compliance management however individual consumer cases are requirements. We are compliant with the CCPA. framework that includes defined policies, trending up. While we are managing the effects Several other states are progressing privacy procedures and controls for Experian associated with these investigations and legislation, with Virginia passing the Consumer employees, business processes, and third lawsuits, the cost of defending litigation is rising Data Protection Act (VDPA) in March 2021. More parties such as our data resellers. and consequently the risk of potential liability states are expected to enact privacy laws before We assess the appropriateness of using data and impact on some parts of our business still a national privacy standard may be established. in new and changing products and services. remains significant. In the meantime, divergence in state laws may We vigorously defend all pending and have an impact on products and services. threatened claims, employing internal and Related to COVID-19, we continue to closely external counsel to effectively manage and monitor call centre volumes and other In Brazil, the general data protection law (LGPD) conclude such proceedings. indicators to ensure that we continue to adhere has been effective since September 2020. While We analyse the causes of claims, to identify to statutory and regulatory deadlines. There is a we have implemented our rigorous compliance any potential changes we need to make potential for increased regulatory investigations programme based on the principles outlined in to our business processes and policies. and/or litigation if any capacity constraints on the law, we have already seen some different We maintain insurance coverage, where our side or at data providers result in missing regulatory interpretations of these principles feasible and appropriate. statutory deadlines, such as for disputes. and how they relate to our Marketing Services business under LGPD. Open banking is under implementation in Brazil and the Central Bank is progressing discussions internally and with authorised private sector entities to define legal and technical aspects. In South Africa, Experian remains on track in implementing its readiness programme for full compliance with the Protection of Personal Information Act (POPIA) ahead of the 12-month implementation grace period, which ends on 1 July 2021. 78 Experian plc Strategic report

Principal risks continued

In addition, we provide training to our key Responsibility Non-resilient IT/business responders and carry out periodic exercises to Our Compliance function sets policies and environment validate that our procedures are fit for purpose. standards, including the Code of Conduct. All We have designed our applications using a employees are accountable for understanding Delivery of our products and services ‘build anywhere, deploy anywhere’ strategy, to and following our conduct standards. depends on a number of key IT systems support portability and maximum resilience. and processes that expose our clients, Our approach to asset lifecycle management Changes this year consumers and businesses to serious helps ensure that we retire and replace our Regulators have continued to put public trust disruption in the event of systems or technology in a timely fashion. and consumer and investor protection at the operational failures. centre of their mission statements and have A global initiative continues progress to promoted prudent conduct risk management. Risk type Risk movement maximise business value and maintain – Operational Stable leadership through accelerated technology We periodically evaluate our policies and other transformation. protocols to ensure that we stay up to speed with external and internal expectations. Potential impact Business conduct risk Related to COVID-19, we continue to take A significant failure or interruption could have Our business model is designed to create industry-leading positions designed to protect a materially adverse effect on our business, long-term value for people, businesses and educate consumers, as well as to promote financial performance, financial condition and society, through our data assets the responsible reporting of data, with and reputation. The impact of this risk, if and innovative analytics and software appropriate safeguards, in order to help the it materialises, will typically be felt in the solutions. Inappropriate execution of our economic recovery from the crisis. near term. business strategies or activities could Examples of control mitigation adversely affect our clients, consumers Dependence on highly or counterparties. We maintain a significant level of resilience skilled personnel in our operations, designed to avoid material Our success depends on our ability to and sustained disruption to our businesses, Risk type Risk movement – Strategic Stable attract, motivate and retain key talent clients and consumers. – Operational while also building future leadership. We design applications to be resilient and with a balance between longevity, sustainability and speed. Potential impact Consumers or clients could receive Risk type Risk movement We maintain a global integrated business – Operational Stable continuity framework that includes inappropriate products or not have access to industry-appropriate policies, procedures appropriate products, resulting in material and controls for all our systems and related loss of business, substantial legal liability, Potential impact processes, as well as ongoing review, regulatory enforcement actions or significant harm to our reputation. The impact of this risk, Not having the right people could materially monitoring and escalation activities. affect our ability to service our clients and We duplicate information in our databases if it materialises, will typically be felt in the short term. grow our business. The impact of this risk, and maintain back-up data centres. if it materialises, will typically be felt in the Responsibility Examples of control mitigation long term. Our corporate and business technology teams, We maintain appropriate governance and Examples of control mitigation oversight through policies, procedures and assisted by the Business Continuity function, In every region, we have ongoing are responsible for maintaining appropriate controls designed to safeguard personal data, avoid detriment to consumers, provide programmes for recruitment, personal and primary and back-up infrastructure to career development, and talent identification minimise disruption. consumer-centric product design and delivery, and effectively respond to enquiries and development. Changes this year and complaints. As part of our employee engagement strategy, we conduct periodic employee Throughout this year we experienced isolated The above activities also support a robust surveys. We track progress against our action events that tested our plans and processes. conduct risk management framework. plans. From an operational resiliency standpoint, We enforce our Global Code of Conduct, Anti-Corruption Policy and Gifts and We offer competitive compensation and including related to the impact of COVID-19, we benefits and review them regularly. continue to closely monitor our infrastructure Hospitality Policy. If we believe employees or suppliers are not following our conduct We actively monitor attrition rates, with a and processes to manage our commitments to focus on individuals designated as high clients, consumers and regulators. standards, we will investigate thoroughly and take disciplinary action where appropriate. talent or in strategically important roles. Experian plc Annual Report 2021 79

Responsibility Responsibility Strategic report Our business units work with the Human Increasing competition Our Corporate Development and Experian Resources function to set and implement We operate in dynamic markets such as Ventures teams, as well as our business units, talent management strategies. business and consumer credit information, monitor the competitive landscape in order to develop and implement appropriate actions. Changes this year decisioning software, fraud, marketing, and consumer services. Our competitive We continue to take steps to effectively manage Changes this year landscape is still evolving, with traditional our ability to attract, develop and retain We are proactive in our efforts to evaluate players reinventing themselves, emerging employee talent and believe our mitigation competitors and markets, and pursue players investing heavily and new entrants efforts have stabilised the overall risk to investments and enhancements to our data, making commitments in new technologies Experian. analytics, technology and capabilities where or approaches to our markets. There is a appropriate, available and feasible. We continue to transform our Talent Acquisition risk that we will not respond adequately to proposition to better attract talent to Experian. such disruptions or that our products and Traditional competitors continue to pursue We have embedded mobile-enabled technology, services will fail to meet changing client differentiated data assets, adjacent vertical introduced candidate experience surveys at and consumer preferences. expansion, and new geographic markets. In the different stages of the hiring and onboarding Consumer Services space, other firms have process, significantly enhanced our presence Risk type Risk movement become bigger competitors in recent years as on social media, implemented key performance – Strategic Stable we have expanded in areas such as digital indicators for recruiters and continue to upskill marketplaces and identity protection. We feel our capability within the Talent Acquisition confident in Experian’s relative position and team. Potential impact competitive advantages, but the broader landscape continues to evolve. We monitor employee engagement through a Price reductions may reduce our margins and variety of channels and have been financial results. Increased competition may There is a long-term competitive risk to implementing the action plans from our reduce our market share, harm our ability to consider related to newer entrants building periodic surveys. In addition to high response obtain new clients or retain existing ones, affect information networks based on consumer data. rates, our latest surveys continue to show our ability to recruit talent and influence our While some of them may not be trying to build a strong engagement and enablement scores. investment decisions. We might also be unable credit bureau or fraud business per se, this is to support changes in the way our businesses not many degrees away from our core business Voluntary attrition rates are stable but continue and clients use and purchase information, and is being closely monitored. to be a focus. affecting our operating results. The impact of Certain governments and central banks in Significant activity in the DEI space prevails this risk, if it materialises, will typically be felt countries where we have credit bureaux are with senior executives taking up Sponsor roles in the long term. collecting loan data from banks, principally for for key areas of our DEI strategy, including Examples of control mitigation systemic risk analysis, though some may share setting gender and ethnicity targets. We continue to research and invest in individual loan data with lenders, which has the With COVID-19, we have kept the health and new data sources, analytics, technology, potential to compete with some of our credit safety of our employees as the primary capabilities and talent to deliver our reference data services. The timing and consideration of our pandemic response. Most strategic priorities. whether any government agencies choose to go of our employees are still working remotely. An this route is uncertain. We continue to develop innovative new effort is underway to determine our strategy for products that leverage our scale and In India, the Reserve Bank of India (RBI) had work arrangements in the future. We expect expertise and allow us to deploy announced plans to establish a Public Credit this to be guided by a consistent global capabilities in new and existing markets Registry (PCR) in 2018. The full extent of framework and principles, with local flexibility and geographies. competition with private credit bureaux in India around the approach to account for legal and is uncertain at this point. cultural nuances. We use rigorous processes to identify and select our development investments, so we In the USA, there have been references to the can efficiently and effectively introduce new potential formation of a government-owned products and solutions to the market. credit bureau, though there have been no actual Where appropriate, and available, we make proposals to establish such a bureau. acquisitions, take minority investments and enter into strategic alliances to acquire new With COVID-19, we continue to engage with our capabilities and enter into new markets. clients to help them navigate risk decisions, such as lending, in the current environment of economic uncertainty. 80 Experian plc Strategic report

Principal risks continued

Responsibility Undesirable investment Our Corporate Development and Experian outcomes Ventures teams, as well as our business units, monitor the investments we make to ensure We critically evaluate, and may invest in, outcomes are in line with expectations. equity investments and other growth opportunities, including internal Changes this year performance improvement programmes. We have refreshed policies and standards that To the extent invested, any of these may apply minimum requirements to our acquisition not produce the desired financial or and integration processes, including enhanced operating results. information security requirements. We are analysing competitive threats to our Risk type Risk movement – Strategic Stable business model and will take advantage of – Operational acquisitions, investments and strategic partnerships, and invest in new technologies where appropriate. Potential impact Failure to successfully implement our key Related to COVID-19, we continue to closely business strategies could have a materially monitor our acquisition pipeline. We are closely adverse effect on our ability to achieve our engaged with each of our minority investments growth targets. to offer guidance and advice and, where appropriate, are providing commercial offerings Poorly executed business acquisitions or that may be helpful to these companies. In partnerships could result in material loss addition, we continue to research any available of business, increased costs, reduced opportunities for investment. revenue, substantial legal liability, regulatory enforcement actions and significant harm to our reputation. The impact of this risk, if it materialises, will typically be felt in the long term. Examples of control mitigation We analyse competitive threats to our business model and markets. We carry out comprehensive business reviews. We perform comprehensive due diligence and post-investment reviews on acquisitions and investments. We employ a rigorous capital allocation framework. We design our incentive programmes to optimise shareholder value through delivery of balanced, sustainable returns and a sound risk profile over the long term. Experian plc Annual Report 2021 81

Viability and going concern

Going concern enabled our business to grow and achieve The assessment process and Strategic report Our going concern assessment focuses good financial results consistently over the last key assumptions decade, despite changes both in the economic mainly on immediately available sources of While we assess our prospects through cycle and in our senior leadership team. liquidity to fund our anticipated trading pattern, various parts of our planning cycle, we plus anticipated acquisition spend, returns to We consider current-year business specifically review our three-year growth shareholders and capital investment, ensuring performance and our future prospects by expectations and the external environment as we always maintain a comfortable margin of conducting a regular cycle of strategic planning, part of the annual strategic planning process. headroom in case of the unexpected. As is now budgeting and forecasting. These processes The Board participates in this review, using the best practice, we also perform a review of appraise revenue, Benchmark EBIT, cash flows, January Strategy meeting as a focal point. We factors that might indicate the beginnings of dividend cover, committed and forecast funding, then develop our detailed annual budget, going concern issues, and have found none. liquidity positions and other key financial ratios, together with an update to the financial plan including those relevant to maintaining our for the two subsequent years. Viability investment-grade credit ratings. Our viability assessment focuses mainly on This year, despite our resilient and better-than- Current economic outlook the expected future solvency of the Group in the expected performance in the face of the COVID-19 presents a challenging context face of more severe, but plausible, unexpected pandemic and its associated global economic for accurate forecasting. We have again events. We use the going concern modelling as downturn, in addition to our usual modelling, we supplemented our normal corporate plan a base, and layer on the effects of downside have performed a stress test to anticipate the process with a number of scenarios reflecting scenarios to assess the magnitude and impacts of a prudent assumption of a 5% the impact of the pandemic in our key business practicality of measures we could take to decline in Benchmark EBIT year-on-year. territories across a range of severities. Some continue to trade in the face of such events. countries and businesses may be more heavily We are not expecting the current economic Assessment period affected by the pandemic than others, in environment, under any plausible scenario, longevity and scale. In many of the markets for There are a wide variety of time horizons to develop into a scenario that could threaten our services, demand is related to employment relevant to managing our business and some our viability. levels and other economic factors. We used of these are highlighted in the chart below. In the most severe of these scenarios, which In the last year, the Group has demonstrated conducting our viability assessment we have equates to a 5% decline in Benchmark EBIT its resilient business model and diverse focused on a three-year timeline because we year-on-year, to stress test the base year of strategy, both of which are described within believe our three-year financial planning our model, with our strategic plan growth the Strategic report. They exemplify our process provides the strongest basis for rates thereafter. underlying purpose to create a better tomorrow, reviewing the outlook for our business how we create value for our stakeholders and beyond the current financial year. Additionally, we assume the Group continues communities, and how our data and analytics to achieve strong cash flow conversion, and are helping address the changing needs of maintains its investment-grade credit rating consumers and businesses. Our strategy has such that funding in the form of capital markets debt, committed bank borrowing facilities or alternatives is available in all plausible market conditions. We assume effective tax rates to be broadly stable (before the impact of any changes of legislation) over the medium term.

Time horizons affecting prospects Assessment of viability The Group continues to be subject to its 1 year 2 years 3 years 5 years 10 years + principal risks, which we have reassessed in the light of COVID-19 (see the principal risks Medium-term section in the Strategic report). Detailed budgets Financial plan including cash financing Long-term flow forecasts – revolving credit financing – bonds To assess the Group’s resilience to adverse outcomes, its forecast performance over the three-year period – including capital Typical service life of data assets expenditure, costs of acquisitions and returns to shareholders – was sensitised to reflect a series of scenarios based on the Group’s Investment appraisal – acquisitions and organic principal risks. This assessment included a reasonable worst-case scenario in which the Group’s principal risks manifest to a ‘severe Share incentive plans but plausible’ level. The assessed risks for which the impacts were applied in aggregate, are shown overleaf. IT systems development

Management succession Pensions planning 82 Experian plc Strategic report

Viability and going concern continued

Principal risk Impact modelled The results of the stress-testing show that, due to our diversified nature – which includes significant counter-cyclical protection, the The loss or inappropriate use of data or For this, we assessed the maximum resilience of the core business, its substantial systems, leading to serious reputational credible extent of a data breach and free cash flows and its strong investment- and brand damage, legal penalties and modelled the likely financial impacts grade credit rating – we would withstand the class action litigation. through loss of revenue, dispute and considered scenarios were these to occur regulatory actions, and the costs of during the forecast period, despite the remediation. impacts of COVID-19.

Viability statement Adverse and unpredictable financial For this, we assessed the possible range of Based on their assessment of prospects and markets or fiscal developments in one or outcomes, beyond our base case, due to viability, the directors confirm that they have more of our major countries of operation, the COVID-19 pandemic. a reasonable expectation that the Group will resulting in significant economic be able to continue in operation and meet its deterioration, currency weakness liabilities as they fall due over the three-year or restriction. period ending 31 March 2024. Looking further forward, the directors have considered whether they are aware of any specific relevant factors New legislation or changes in regulatory For this, we assessed the maximum beyond the three-year horizon that would enforcement, changing how we operate credible extent of simultaneous legal threaten the long-term financial stability of our business. actions in two of our core markets and the Group over a ten-year period and have modelled the likely financial impacts after confirmed that, other than any residual potential insurance recoveries. uncertainty surrounding COVID-19, the effects of which have been considered in the analysis, they are not aware of any.

Expected future solvency Our modelling shows that: Strategic report The Group had: under our continued COVID-19 stress test This Strategic report was approved by a duly  undrawn committed bank borrowing scenario, which assumes a 5% decline authorised committee of the Board of directors facilities of US$2.7bn at 31 March 2021 in Benchmark EBIT year-on-year, with on 18 May 2021 and signed on its behalf by: associated reductions in cash flow, we  only one borrowing facility covenant, would be able to maintain the significant Charles Brown requiring Benchmark EBIT to exceed three majority of our undrawn committed bank Company Secretary times net interest expense before financing borrowing facilities fair value remeasurements (as at 31 March 18 May 2021 2021 our cover is 11 times) under our harshest ‘severe but plausible’ scenario we would comfortably maintain Benchmark operating cash inflows of sufficient undrawn borrowing capacity and US$1.5bn and interest expense of satisfy all borrowing facility covenants US$0.1bn for FY21. further significant headroom could be made available by scaling back capital investment or operating expenditure in all scenarios our debt covenants would be comfortably satisfied. Experian plc Annual Report 2021 83 Governance

In this section 84 Chairman’s introduction 86 Board of directors 88 Corporate governance report 99 Nomination and Corporate Governance Committee report 104 Audit Committee report 111 R eport on directors’ remuneration 135 Directors’ report Governance 84 Experian plc Governance

Chairman’s introduction Good corporate governance is at the heart of our business

During the year, the Board: considered the payment of dividends; balanced business performance and shareholder interests; approved the issue of debt securities and a funding plan for the financial year; considered an update on workforce pay and policies from George Rose, our Remuneration Committee Chairman, following his meeting with the UK and Ireland People Forum; consulted with shareholders on our new Remuneration Policy (which received a Mike Rogers 95.34% favourable vote at the Annual Chairman General Meeting in July 2020), and considered a number of important strategic On behalf of the Experian Board, acquisitions in North America, Latin America I am delighted to present the and EMEA. Corporate governance report for The Chief Executive Officer, Company Secretary the year ended 31 March 2021. and I regularly evaluated possibilities for the Board to meet in person during the year. However, as in many areas of all our business The aim of the report is to provide and personal lives, the Board embraced an overview of the Group’s technology and all Board and committee governance framework and the meetings were held using video. Although not Board’s approach to maintaining ideal, there was no deterioration in the engagement of the Board, nor in the quality of good corporate governance debate, challenge and discussions as we during this challenging year, as worked (and continue to work) to ensure good well as summarising the work of corporate governance, oversight and monitoring during the continuing pandemic. the Board and its committees in Equally, the pandemic has not impacted the discharging their duties and commitment that our directors have to the Experian Board – our directors had 100% responsibilities. As Chairman, one of my key roles is to ensure attendance at Board and committee meetings that the Board and Experian continue to have held during the year. high standards of corporate governance while, at the same time, establishing and continually As discussed at the January 2021 strategy developing the right controls to provide the presentations, Experian and the Board can Board with the appropriate level of oversight be proud of the resilience of the business and and assurance. By having a sound corporate the ingenuity shown by our employees, in a governance framework, we can ensure situation where the work environment and effective and efficient decision-making, and expectations underwent a rapid change, and the right balance of knowledge, diversity, skills, where the way we engage with employees, experience and challenge to monitor and clients, suppliers, regulators and other manage the risks we face. stakeholders had to be reoriented practically overnight. Experian was proud to put its people COVID-19 pandemic first in its response to the pandemic and, from In the 2020 Annual Report, published in June a cultural perspective, our people have been 2020, I observed that the last time the Experian pleased with the ability to be productive in their Board had all physically met was January 2020, roles, the communications regarding COVID-19 and that none of us could have imagined how and the support from managers. the world would change in the months One of the positive things from the pandemic following the start of the pandemic. Sadly, was how Experian demonstrates the critical similar conditions apply one year on and, while role it plays in society, helping people, the roll-out of vaccines provides some hope, the governments and businesses. As the pandemic pandemic is not over yet. continues, and as we think about new ways In what has been a challenging global of working, the Board will continue to partner environment, the Board had a busy year, closely with management to safeguard our including COVID-19 focused meetings at the employees, customers, communities and our height of the crisis and increased review of business to ensure Experian is in the best financial and operational performance. possible place to move forward once the pandemic has passed. Experian plc Annual Report 2021 85

Board composition and succession The evaluation process also allowed the Board Provision 38 – the Company is largely The Nomination and Corporate Governance to identify opportunities for it to further improve compliant with this provision. The area of partial Committee continues to lead the process for its effectiveness. You will read later about the compliance relates to alignment of pension Board appointments, and ensures that plans results of the evaluation and the areas of focus contribution rates of the executive directors are in place for orderly Board and senior that we have agreed. with the wider workforce. The rate for our management succession. During the year, US-based executive director is already aligned on the recommendation of the Committee, Conclusion with the wider US workforce, and the rates for our two UK-based executive directors are Alison Brittain was appointed as a non- I hope you find this Corporate governance already aligned with those available to other executive director. We were delighted to report helpful in understanding the senior UK employees. The rates for any new welcome Alison to the Board, albeit virtually, arrangements and processes we have in place UK-based director would immediately be and she brings over 25 years' senior at Experian, and what we have done in terms of aligned with the wider workforce, and the rates management experience in major financial the recommendations of the Code. institutions, alongside five years as the for our two existing UK-based executive Even though it has been a challenging year, and Chief Executive of a FTSE 100 leisure business directors will be aligned with the wider UK the COVID-19 pandemic continues to impact our with UK and growing international operations. workforce by the end of 2022, following the business, I believe that the Board is well placed The Company Secretary and I ensured that a required amendments to contractual

to provide the strategic oversight and Governance tailored induction programme was put together arrangements. stewardship required to ensure that Experian for Alison. This was again provided virtually by continues to deliver long-term sustainable global executives, and was well received. The success. Experian corporate website Committee also recommended the appointment of Jonathan Howell to the Board on 1 May 2021. The 2021 Annual General Meeting will be The website www.experianplc.com Key attributes that Jonathan brings to the held on 21 July 2021. Further details will be contains additional information about our Board include a wealth of financial, strategic, published in the Notice of Annual General corporate governance: technology and regulatory expertise, Meeting, which has been sent or made available Terms of reference of the principal encompassing both Business-to-Business to shareholders, and is also available on the Board committees (B2B) and Business-to-Consumer (B2C), which Company’s website, www.experianplc.com. The schedule of matters reserved is of significant benefit to Experian. to the Board Statement of compliance The Committee’s work during the year also The Chairman’s and the CEO’s split included agreement on certain key Board The Board is committed to the highest of duties, and the duties of the Senior composition and succession considerations, standards of corporate governance and, for the Independent Director including areas of focus for future non- year ended 31 March 2021, other than one The Company’s memorandum and executive director recruitment, continued focus element of Provision 38 in relation to alignment articles of association on diversity and the recruitment of of pension contribution rates (as explained non-executive directors who are serving below), the Company complied with all the Details of AGM proxy voting by executives, and the preferred timing of provisions of the UK Financial Reporting shareholders, including votes withheld. non-executive recruitment including of potential Council’s (FRC’s) UK Corporate Governance successors to the Audit and Remuneration Code (as published in July 2018), the UK Committee Chairmen. Financial Conduct Authority’s (FCA’s) Disclosure Guidance and Transparency Rules sourcebook There is more detail on Board composition sections 7.1 and 7.2 (which set out certain and succession beginning on page 100. mandatory disclosure requirements), the FCA’s Listing Rules 9.8.6R, 9.8.7R and 9.8.7AR which Board evaluation include the ‘comply or explain’ requirement and, A key element of good governance is an on a voluntary basis, the UK Department for annual evaluation to ensure that the Board, its Business, Energy and Industrial Strategy (BEIS) committees and Board members are continuing Directors’ Remuneration Reporting Regulations to operate and perform effectively. The UK and Narrative Reporting Regulations. These Corporate Governance Code (the Code) documents are publicly available as follows: recommends (and the Board supports) an The Code can be found at www.frc.org.uk external evaluation every three years. A comprehensive and externally facilitated Board The FCA’s Disclosure Guidance and evaluation took place last year. This year, our Transparency Rules sourcebook as well Board evaluation was an internal one which (in as Listing Rules can be found at www. line with our agreed three-year cycle) handbook.fca.org.uk concentrated on progress on last year’s areas The BEIS Directors’ Remuneration Reporting of focus and the resulting actions, as well as Regulations and Narrative Reporting agreeing new areas of focus for the coming Regulations can be found at www.gov.uk. year. The evaluation provided the Board with the In addition, the FRC Guidance on Risk assurance that actions from the external Management, Internal Control and Related evaluation, including around Board succession, Financial and Business Reporting can be found were progressing well, and the Board at www.frc.org.uk. concluded that it was operating effectively. Experian plc Governance Code principle 86 Board Leadership Board of directors

Nm Re

Mike Rogers (56) Brian Cassin (53) Lloyd Pitchford (49) Chairman Chief Executive Officer Chief Financial Officer Appointed to the Board on 1 July 2017, and as Appointed to the Board as Chief Financial Appointed to the Board on 1 October 2014. Chairman (and Chairman of the Nomination and Officer on 30 April 2012, and as Chief Executive Other current roles: Lloyd is a non-executive Corporate Governance Committee) on 24 July Officer on 16 July 2014. director (and chairs the Audit Committee) of 2019. Other current roles: Brian is a non-executive Bunzl plc. Other current roles: Mike is a non-executive director of J Sainsbury plc and sits on its Audit Skills and contribution: Lloyd is a qualified director of NatWest Group plc (he chairs its and Nomination Committees. accountant. He holds an MBA and has deep Group Sustainable Banking Committee, and sits Skills and contribution: Brian brings strong financial and strategic experience, built up on the Group Performance and Remuneration leadership, a clear view of strategic objectives through a career working in complex, Committee) and is the non-executive Chairman and decisive management skills to this role. He growth-oriented, global organisations, across a of Aegon UK (and certain of its regulated has strong financial and commercial acumen range of industries and responsibilities. He subsidiaries). and a broad range of operational competencies. brings additional perspectives to Experian from Skills and contribution: Mike brings over 30 His non-executive role augments his strong his non-executive role with Bunzl plc. years of banking and financial services board-level experience. Experience: Before joining Experian, Lloyd held experience, with a reputation for strategic Experience: Brian was previously the a wide portfolio of finance and operational insight and focused execution. His current and Chief Financial Officer of Experian and, before responsibilities: as Chief Financial Officer of previous board-level experience, both executive that, Managing Director at Greenhill & Co. He Intertek Group plc; in senior finance positions and non-executive, is of huge value to the has also held various senior roles at Baring (including Group Financial Controller) at BG Experian Board. Brothers International and the London Group plc; and in financial and commercial Experience: Mike was Group Chief Executive Stock Exchange. roles at Mobil Oil. Officer of LV= Group from 2006 until 2016, during which time he grew the organisation into a significant player in the life and general insurance market. Before that, Mike was with Barclays plc for more than 20 years, holding a number of senior roles, most recently as Managing Director, UK Retail Banking. He was previously a non-executive director of the Association of British Insurers.

Au Nm Re Au Nm Re Au Nm Re *

Caroline Donahue (60) Luiz Fleury (64) Jonathan Howell (58) Non-executive director Non-executive director Non-executive director Appointed to the Board on 1 January 2017. Appointed to the Board on 8 September 2015. Appointed to the Board on 1 May 2021. Other current roles: Caroline is on the Board of Other current roles: Luiz is a Board member of Other current roles: Jonathan is the Chief GoDaddy Inc., Emerge America, and the Carrefour Brazil (the trading name of Atacadão Financial Officer of The Sage Group plc. Computer History Museum. She is also on the S.A.), Magnopus, Inc. and DOTZ S.A. Skills and contribution: Jonathan has a wealth Executive Committee of Northwestern C100, Skills and contribution: Luiz has spent most of of financial, strategic, technology and and is a mentor for She-Can. his career in financial services and has regulatory expertise, encompassing both Skills and contribution: Caroline brings extensive insight and deep local knowledge of Business-to-Business (B2B) and Business-to- Consumer (B2C), which is of huge benefit to extensive experience of international markets the Brazilian financial market. His considerable Experian. He is a highly regarded FTSE 100 and technology as well as knowledge of boardroom experience adds to the strength, Chief Financial Officer, and also brings consumer sales and marketing, innovation and depth and effectiveness of our Board. consumer-centricity. The Board also benefits considerable executive and non-executive from her insight and extensive experience in Experience: Luiz has held Chief Executive roles UK-listed boardroom experience. mass-market, digital, multi-channel and at Cetip S.A., Banco Ibi and Redecard, together Experience: Jonathan was previously an Business-to-Consumer (B2C) distribution, with senior finance and investment positions at independent non-executive director and marketing, and brand and sales management. Banco Citibank S.A., Banco Marka S.A. and C&A Chairman of the Audit and Risk Committee of Brenninkmeyer Brasil. Luiz was President and Experience: Caroline previously held roles at The Sage Group plc., for five years while a member of the Executive Board at Cetip S.A., Intuit where she was Executive Vice President, serving as Group Finance Director of Close Chief Marketing and Sales Officer; Senior Vice and a Board member of Grupo Sequóia de Brothers Group plc for ten years until President, Sales and Channel Marketing; and Logística, Eneva S.A., Discount Malls do Brasil, November 2018. Before that he was Group Vice President and Director of Sales. She also Banco Ibi and FHV Holdings Ltda. Finance Director at the London Stock Exchange held sales and channel management roles at Group plc for nine years and has also been a Knowledge Adventure, NeXT Computer and non-executive director of EMAP plc and Apple, Inc. Chairman of FTSE International. The early part of Jonathan's career was at Price Waterhouse where he qualified as a chartered accountant. Code principle Experian plc Annual Report 2021 Board Leadership 87

Au Nm Re Au Nm Re

Kerry Williams (59) Dr Ruba Borno (40) Alison Brittain (56) Chief Operating Officer Non-executive director Non-executive director Appointed to the Board on 16 July 2014. Appointed to the Board on 1 April 2018. Appointed to the Board on 1 September 2020. Other current roles: Kerry is a Board member Other current roles: Ruba is a Senior Vice Other current roles: Alison is the Chief of Pacific Mutual Holding Company, and the US President and General Manager at Cisco. Executive of Whitbread PLC, and Deputy Chair Institute for Intergovernmental Research. Skills and contribution: Ruba holds a Ph.D., a and a Trustee of the Prince’s Trust. Skills and contribution: Kerry holds an MBA Master of Science in Electrical Engineering, and Skills and contribution: Alison is a highly and has built up a significant and deep a Bachelor of Science in Computer Engineering. versatile business leader and general manager, knowledge of Experian’s global business and She was an Intel Ph.D. fellow at the National who holds an MBA and brings considerable operations, through the leadership roles he has Science Foundation’s Engineering Research experience of operating in consumer-facing held. He brings to Experian and the Board a Center for Wireless Integrated MicroSystems. service environments. She has over 25 years' wide range of skills from his background in the She brings advanced technologies expertise to senior management experience in major financial services industry and his Experian. We benefit greatly from her focus on financial institutions, and the Board also non-executive roles. supporting businesses in strategically adapting benefits from her board-level experience with Experience: Kerry’s roles at Experian have to the threats and opportunities created by Whitbread PLC and, previously, Marks & included Group Deputy Chief Operating Officer, technology, as well as pushing disruptive Spencer Group PLC. Governance President of Credit Services, President of technology to create new opportunities. Experience: Alison was previously with Lloyds Experian Latin America, and Group President Experience: Ruba sat on the Board of The Tech Banking Group (Group Director, Retail Division) of Credit Services and Decision Analytics, Museum of Innovation in Silicon Valley. She was and Santander UK PLC (Executive Director, Experian North America. Previously, he was previously at The Boston Consulting Group Retail Distribution), where she was also a board President at ERisk Holdings Incorporated, (BCG), where she specialised in helping director. She previously held senior roles at Senior Vice President/General Manager at enterprises through complex technology Barclays Bank, has been a member of the UK Bank of America and held senior management transformations, and was also a leader in Prime Minister’s Advisory Council, was named positions at Wells Fargo Bank. BCG’s Technology, Media & ‘Business Woman of the Year 2017’ in the Veuve Telecommunications, and People & Clicquot awards and was awarded a CBE in the Organization practice groups. 2019 UK New Year Honours list. Alison has been a non-executive director of Marks & Spencer Group PLC.

Company Secretary: Charles Brown FCG Independent Auditor: KPMG LLP, Chartered Accountants and Recognized Auditor

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Deirdre Mahlan (58) George Rose (69) Au Member of the Audit Committee Non-executive director Deputy Chairman and Member of the Nomination and Appointed to the Board on 1 September 2012, Senior Independent Director Nm Corporate Governance Committee and as Chairman of the Audit Committee on Appointed to the Board on 1 September 2012, 21 January 2015. as Deputy Chairman and Senior Independent Re Member of the Remuneration Committee Other current roles: Deirdre chairs our Audit Director on 16 July 2014 and as Chairman of the Committee. She is a non-executive director Remuneration Committee on 24 July 2019. Committee Chairman (and chairs the Audit Committee) of The Other current roles: George chairs our Duckhorn Portfolio, Inc. Remuneration Committee and is a * Jonathan Howell’s committee memberships commenced on appointment on 1 May 2021. Skills and contribution: Deirdre is a qualified non-executive director of EXPO 2020 LLC. accountant with an MBA and has many years’ Skills and contribution: George is a qualified experience in senior finance and general accountant, whose career has included several management roles. Her financial expertise and high-level finance positions. As well as this experience ensure effective leadership of our financial expertise, he adds to the collective Audit Committee. Deirdre also brings us the strength of the Board thanks to the numerous benefits of her previous board-level experience non-executive positions he has held with with Diageo plc. leading companies. Experience: Deirdre has held senior finance Experience: George was Group Finance Director and general management roles, including most and Director of Finance and Treasury at BAE recently as President of Diageo North America, Systems plc (where he was a Board member), as well as Chief Financial Officer, Deputy Chief and held senior finance positions at Leyland DAF Financial Officer, Head of Tax and Treasury at plc and Rover Group. He was a non-executive Diageo plc, Senior Vice President, Chief director of National Grid plc, SAAB AB, Orange Financial Officer at Diageo North America, and plc, and also (where he chaired the Audit Vice President of Finance at Diageo Guinness Committees) Laing O’Rourke plc and Genel USA, as well as various senior finance roles in Energy plc. He has also been a member of the Joseph Seagram and Sons, Inc. and PwC. UK Industrial Development Advisory Board. Experian plc Governance Code principle 88 Board Leadership and Company Purpose Corporate governance report

Board Latin America and UK and Ireland), and to allow for appropriate oversight and monitoring. For example, as well as the usual Role of the directors technology activity to support Experian’s growth The Board is responsible for setting the ambitions. The Board observed, in particular, monthly Board Finance Report, the Chief Company’s purpose, values and strategy, and the continued increase in strategic options for Executive Officer provided additional updates ensuring that the necessary resources are the Group, the opportunities for the Health to the Board on latest financial performance, available for long-term sustainable success, to business, the plan for margin growth in smaller forecasts and trends, and certain other generate value for shareholders and contribute regions and the skillsets and culture required operational matters. to continue to drive the business forward. to wider society. The Board sets the Group's The Board also conducts post-investment strategy. In January 2021, senior management The Board monitors strategy and major reviews on an agreed timeline, for any presented the proposed strategic plan to the initiatives throughout the year (as indicated acquisitions it has previously approved. Board, which had been developed to deliver on the Strategic and budget planning You can read about the Board’s procedures strong financial performance and build on process chart, below). Experian’s competitive advantages, with to manage risk, oversee the internal control fundamental components around building The budget discussions in March are focused framework, and determine the nature and relationships with consumers, maximising on ensuring that we have the right resources to extent of the principal risks the Company is adjacent opportunities, building a high- deliver the agreed strategy. These discussions willing to take to achieve its strategic objectives, performing and inclusive culture and achieving include detailed focus on both regional and under Risk management and internal control operational excellence. As usual, the global business budgets. This year, the Board systems review on page 110. noted that the backdrop for the FY22 budget presentations took place over two days. The Board delegates management of the remained uncertain, with COVID-19 and the However, due to COVID-19 travel restrictions, the Group’s day-to-day activities but is accountable related health and economic crises continuing presentations were completed using video to shareholders for delivering financial to disrupt global markets. technology. Board members were pleased with performance and long-term shareholder value. the revised format, the quality of the pre-reading The Board continually monitors management To achieve this, the Board has put in place a material and the more focused presentations. and financial performance against the Group’s framework of controls, including clear and This year’s presentations included regional objectives. To enable it to do this the Board robust procedures and delegated authorities, and business line updates (Health, Consumer receives updates, at and between every which enables the Group to appraise and Information Services, Consumer Services and scheduled Board meeting, on operational and manage risk effectively. This framework is Decision Analytics). The Board also discussed financial matters as well as any major illustrated in the Governance framework with management plans to scale regions initiatives underway. Given the challenges of diagram on page 93. COVID-19, the Board received an increased outside the Group’s largest (North America, In addition, the Board has reserved decisions number of ‘between meeting’ updates this year, about certain key activities to itself, including: Strategic and budget planning process A. Strategy and management – approval and oversight of Experian’s long-term objectives and commercial strategy, approval of annual operating and capital expenditure budgets, and January oversight and monitoring of operations. Board strategy review* B. Structure and capital/Financial reporting and controls – changes in the Group capital or corporate structure. Approval of the Group’s results, dividends, dividend policy, significant October to November changes in accounting policy, tax policy and March Financial planning treasury policy. Board budget review and prioritisation C. Contracts – approval of major or strategic capital projects, and of major acquisitions and disposals. – approval of key September March to May D. Communication stakeholder documents, circulars, prospectuses, Internal review Preliminary steps and reviewing investor sentiment. E. Board membership/Delegation of authority/Corporate governance/Policies June – approval of changes to Board composition, July to August ensuring adequate succession planning, Strategic planning Group Operating Committee review meeting reviewing reports from Board committees, reviewing governance arrangements, and approval of various policies. Details of the activities of the Board during the July year under these headings are on page 90. Board strategy mid-year review A high-level statement of the types of decisions that have been delegated by the Board is shown in the ‘Governance framework’ diagram on * Including two days of strategy presentations. page 93. Code principle Experian plc Annual Report 2021 Board Leadership and Company Purpose 89

Board meetings

The Board meets sufficiently frequently to people. Nine Board meetings were held during culture. There is no doubt that the pandemic discharge its duties, and holds additional the year, three of which were ad-hoc meetings. has changed ways of working for many people meetings when required. This year, for Scheduled meetings are normally held over and organisations across the world, and the example, the Board met to specifically discuss two to three days, with Board committee Chairman, Chief Executive Officer and the impact of the COVID-19 global pandemic meetings also taking place during this time. Company Secretary will continue to review from a number of perspectives, including The Board continued to operate effectively optimal ways to operate the Board on an liquidity and funding, operational resilience, during the year utilising video technology and ongoing basis, as circumstances dictate. governmental and societal support, and the Board retained its cohesive and collegiate

2020 2021

April May June July September November January February March Governance Board Board and Board Board and Board and Board and Board and Board Board and meeting committee meeting committee committee committee committee meeting committee meetings meetings meetings meetings meetings meetings

Ad-hoc Board meetings

Attendance at Board and principal committee meetings

Nomination and Corporate Governance Remuneration Audit Board* Committee Committee Committee Directors as at 31 March 2021 Mike Rogers 9/9 – 100% 4/4 – 100% 6/6 – 100% n/a Brian Cassin 9/9 – 100% n/a n/a n/a Lloyd Pitchford 9/9 – 100% n/a n/a n/a Kerry Williams 9/9 – 100% n/a n/a n/a Dr Ruba Borno 9/9 – 100% 4/4 – 100% 6/6 – 100% 4/4 – 100% Alison Brittain (appointed 1 September 2020) 5/5 – 100% 3/3 – 100% 4/4 – 100% 3/3 – 100% Caroline Donahue 9/9 – 100% 4/4 – 100% 6/6 – 100% 4/4 – 100% Luiz Fleury 9/9 – 100% 4/4 – 100% 6/6 – 100% 4/4 – 100% Deirdre Mahlan 9/9 – 100% 4/4 – 100% 6/6 – 100% 4/4 – 100% George Rose 9/9 – 100% 4/4 – 100% 6/6 – 100% 4/4 – 100%

* Includes three ad-hoc Board meetings held during the year Experian plc Governance Code principle 90 Board Leadership and Company Purpose

Corporate governance report continued

What did the Board do this year?

The Board’s key activities during the year

A A. Strategy and management F B. Structure and capital/Financial reporting and controls C. Contracts D. Communication E B E. Board membership/Delegation of authority/ D C Corporate governance/Policies F. Other

A. Strategy and management  Considered and approved the Viability D. Communication  Evaluated and debated presentations statement for inclusion in the Annual  Reviewed investor relations, external from management during the two-day Report. communications and media updates at strategy presentations, and approved the  Reviewed risk reports, the appropriateness each scheduled Board meeting, and Group’s strategy update. of preparing the financial statements on discussed the positive brand impact of the  Received and considered the key the going concern basis and the Audit North America Consumer Services initiatives and strategy update as part of Committee’s advice on making a ‘fair, business. the ongoing strategic planning cycle. balanced and understandable’ (FBU)  Reviewed and discussed draft full-year statement in the Annual Report.  Reviewed operational and financial and half-year financial results updates from the Chief Executive Officer, C. Contracts presentations for analysts and the Chief Operating Officer and the Chief institutional shareholders, and noted  Reviewed and approved several strategic Financial Officer at each scheduled Board investor sentiment regarding the Board acquisitions, including: meeting – this year, particularly in the first and senior management. half, the Board was provided with –– Tapad, Inc., a leading provider of digital  Through the Remuneration Committee, significant detail on the Group’s continuing identity services. engaged extensively with shareholders response to COVID-19. –– Axesor businesses, one of Spain’s on proposed remuneration arrangements.  Reviewed monthly reports, including Business Information leaders. details of performance against budget and –– BrScan, a leading player in the identity E. Board membership/Delegation the Group’s financial position and and fraud market in Brazil. of authority/Corporate governance/ stakeholder updates, plus additional –– Corporate Cost Control, a leading Policies out-of-cycle reporting and updates due to provider of workforce solutions in the  Reviewed the Group’s Gifts and Hospitality COVID-19. USA, as the Group looks to broaden its Policy, and considered the annual  Reviewed and discussed regulatory and employer and verification solutions environmental, and health and safety, compliance matters with the Group offering. updates and approved associated policy General Counsel at Board and Audit –– Employment Tax Servicing, LLC, a statements. Committee meetings, including updates leader in verification of employment  Reviewed Board evaluation findings and on ongoing engagement, current issues, and income in the USA which provides agreed areas of focus, authorised Board potential impacts and plans. enterprise-level workforce members’ potential conflicts of interest  Reviewed the ongoing investigation into a management solutions complementing and approved the annual election and potential non-sensitive data incident in human resources and payroll re-election of Board members. Brazil. administration.  Considered and approved the Notice of  Reviewed and approved risk appetite –– Tax Credit Co., LLC a leading provider of Annual General Meeting (AGM) for issue to statements for the Group. verification of employment and of shareholders, and the arrangements for income and hiring and research tax the 2020 AGM due to COVID-19. B. Structure and capital/Financial credit technology and administration.  Reviewed and approved the appointments reporting and controls  Approved the disposal of Experian’s of Alison Brittain and Jonathan Howell as  Approved the Group’s Annual Report and investment in Finicity to MasterCard. independent non-executive directors of the full-year and half-year financial results and  Reviewed and discussed the corporate Company. carefully considered dividend payments. development pipeline at each Board  Reviewed and discussed the annual  Approved the refinancing of existing meeting. corporate responsibility update from the borrowing facilities, the issue of bonds, and Global Head of Corporate Responsibility. delegated authority that would ensure  Received details of Board members’ flexibility regarding financing between external appointments and share dealings. Board meetings while markets remained  Reviewed and approved the Group’s tax volatile. and treasury policies, and approved the Discussed and approved the Group’s Group’s Code of Conduct. budget presentation for FY22 and received updates on Group insurance and pension arrangements. Code principle Experian plc Annual Report 2021 Board Leadership and Company Purpose 91

Culture The Board also planned to spend time at the In addition, during the year, all of our female Board members (Dr Ruba Borno, Alison Brittain, The UK Corporate Governance Code Group’s Customer Innovation Experience in Caroline Donahue and Deirdre Mahlan) emphasises the importance of the role of the London, which aims to bring our business participated in a panel session as part of our Board regarding culture, with specific propositions and innovation to life, and provide global celebration of International Women’s Day recommendations that the Board assesses and an insight into customer and consumer in March 2021. The Women in Experian group monitors culture, and ensures that workforce interactions with the business. organised a series of events, with activities policies, practices and behaviours are aligned Given the constraints this year, the Board has including a Women in Experian mentoring with the Company’s purpose, values and regularly been kept apprised on people-related programme, leadership panels with featured strategy. The Experian Way, which lays out a and cultural matters. The pandemic took hold in keynote speakers, personal and professional globally consistent set of expectations within March 2020 and, as reported last year, the development sessions, and community the business across five strategically important Board agreed COVID-19 priorities and goals, outreach. As well as this, the Board did continue areas, is underpinned by the following which included the safety of employees and the to interact with employees as much as possible Principles – Integrity, Fairness, Data Security use of the Group’s capabilities to help during the year: for example, all of the Group and Value. These Principles help us to create a communities survive and recover rapidly. The Operating Committee attended the strategy vibrant ethical performance culture. We April 2020 ad-hoc Board meeting was COVID-19 presentations with the Board in January 2021, continue to believe that culture is embedded focused and, from a cultural perspective, the and the Board met with members of our global Governance throughout an organisation, rather than, for Board heard that morale was good across the and Consumer Services communications example, in isolation within a set of Board business and that employees were coping well teams in November 2020 to discuss the metrics. We are confident that the information working from home. The level of employee integration and support of the Experian the Board and its committees review, the communication and support provided by the brand by the Consumer Services business. activities that Board members engage in, and business was very high, and the Board was Experian’s existing structures and processes, updated on the small number of confirmed mean that Experian and the Board are meeting COVID-19 cases among employees. The Board the recommendations of the Code. was also reminded of the 'people first' approach Last year’s external Board effectiveness being taken by the business, with the priority evaluation noted that there was an excellent being to protect Experian’s people and their focus on Board culture, employee engagement jobs as far as possible through the crisis. This and developing talent, with opportunities (in was well received by employees, and reflected normal times) for the Board to meet Experian’s the Group’s long-term investment in its people people, assess potential and see culture in and its talent agenda. action. The evaluation report also noted that the The People updates from the Chief Executive Board recognises the importance of values and Officer to the Board at each scheduled meeting culture in what Experian has delivered to date were a core focus of his reporting to the Board, and is leading by example in the way it acts and particularly in the early stages of the pandemic. engages. For example, in May 2020, the Board considered One of the primary ways we believe the Board the results of a sentiment survey, which can experience, assess and evaluate culture is indicated the concern and uncertainty of through meeting with colleagues throughout employees, but that there was optimism also the business, as it does in normal years. A and employees were pleased with the Experian notable example of this was 2019 when the response. Employee concerns were Board attended a number of engagement acknowledged and acted upon, including events at our North America operational around technology, tools and the variety of headquarters in Costa Mesa, California, challenges facing them (such as isolation, including a ‘Power of You’ lunch event focused competing demands, working environments, on culture, diversity and inclusion, attended by a and physical and mental well-being). As the large number of employees and pandemic continued, and mindful of a people representatives from many of Experian North and culture perspective, the Group Operating America’s Employee Resource Groups (ERGs). Committee considered the return of employees With COVID-19, it has not been possible for the to our offices (it was explained to employees Board to engage with our people in the same that they would have the choice to return when way this year. Prior to the pandemic, the Board they felt comfortable) and longer-term future had planned to hold meetings during the year ways of working, where employees would have at our operational headquarters in Brazil and increased flexibility and choice in their work North America, and engagement events would arrangements such as location and hours. have been planned around those Board visits. Experian plc Governance Code principle 92 Board Leadership and Company Purpose

Corporate governance report continued

Examples of ways that the Board monitors and assesses culture

Who What The Board The Chief Executive Officer’s report, circulated before every scheduled Board meeting, contains a specific People update, which includes culture. The Board regularly considers the results of employee sentiment surveys. Annually reviews the Group’s Code of Conduct. This explains our approach to professional and ethical standards, and ensures that Experian’s employees know exactly what’s expected from them in helping Experian live up to those standards. All employees must undertake annual training. Board members Visiting Group business locations enables the Board to spend time with employees of varying seniority and assess culture in a local context. Although this has not been possible due to COVID-19 travel restrictions, it remains a key consideration that the Board has the ability to engage in this way with the business. Audit Committee Overviews of interactions with government, regulators and the perspective provided by Global Internal Audit can give an indication of culture. The Committee and the Board receive relevant updates at every meeting. Management is transparent and responsive to challenge. Twice a year, the Committee reviews calls made to the Confidential Helpline. Remuneration Committee Reviews an ‘Overview of employee pay’ paper, designed to provide an overview of pay structures at Experian and their alignment with our purpose, values and strategy. This allows the Committee to ensure that relevant policies and practices are consistent with Experian’s values. The Committee Chairman met virtually with the UK and Ireland Experian People Forum in the UK and Ireland in March 2021, and feedback was provided to the Board. Reviews our UK gender pay gap disclosures every year, on behalf of the Board. Nomination and Corporate In January, the Committee discussed a People Strategy, Talent and Culture update with the Chief People Officer, Governance Committee which included details of strategic pillars and key risks, people implications, global people strategic focus areas and the positive progress of talent and culture initiatives.

The Experian Way

The Experian Way is a unique and consistent way of working globally. It informs how our people act and behave, which shapes our culture. It is defined across five key areas of strategic importance:

Delight Innovate Collaborate Safeguard Value customers to grow to win our future each other

At Experian, whether your At Experian, it’s the One Experian mindset – At Experian, each of us We make Experian a great role brings you into responsibility of each one we work as one acts as a guardian for the place to work. We treat contact with customers of us to find opportunities united team and use protection of data, each other with respect, directly or not, all of us and improve the way we the combined strengths information, assets and trust and integrity. contribute to meeting do things to help our and capabilities of our our people to safeguard customer needs. At the business and our people, products and our future. heart of what we do are customers grow. services across teams, the relationships we functions and regions. invest in and nurture. This translates into seamless experiences for our customers. Code principle Experian plc Annual Report 2021 Board Leadership and Company Purpose 93

Governance framework

Global Delegated Authorities Matrix senior executives. For matters not reserved delegations to the Group’s principal This key Group governance document to the Board, the matrix prescribes the subsidiaries, which are reported to it at each comprises the schedule of matters reserved cascade of authorities delegated Board meeting. Regional matrices are also in to the Board, the Board committees’ terms of throughout the Group by respective Group place. reference and the authority levels for the companies, together with their monetary Group’s principal subsidiaries, directors and limits. The Board monitors the exercise of

Delegated authority flow

Board Principal subsidiaries Executive Operating See Board of These are Group companies to which the Board has management businesses directors

delegated certain decision-making powers, for example team Governance on pages 86 implementing decisions agreed in principle by the Board; to 87 executive management of the operations of the Group within the strategy and budget approved by the Board; acquisitions and disposals with a value up to US$20m, and capital expenditure projects.

Board committees Executive committees/functions

Nomination and Corporate Group Operating Committee (OpCo) Governance Committee The OpCo comprises the most senior executives from the Group. Its remit includes identifying, See report on debating and achieving consensus on issues involving strategy, growth, people and culture, and page 99 operational efficiency. It also focuses on ensuring strong communication and co-operative working relationships among the top team. Its meetings tend to be issues oriented and focus on selected Group issues worthy of debate.

Audit Committee Risk management committees (executive and regional)

See report on Executive Risk Management Committee (ERMC) comprises senior Group executives, including page 104 the executive directors and the Company Secretary. Its primary responsibility is to oversee the management of global risks. The regional risk management committees oversee the management of regional risks, consistent with Experian’s risk appetite, strategies and objectives, and are comprised of senior regional leaders. Remuneration Committee Security and Continuity Steering Committee (SCSC) is a sub-committee of the ERMC. The SCSC’s primary responsibility is to oversee management of global information security, See report on physical security, and business continuity risks, consistent with Experian’s risk appetite, page 111 strategies and objectives. Assurance Steering Committee (ASC) is also a sub-committee of the ERMC and oversees the development and implementation of the Group's assurance framework.

Strategic project committees (global and regional) These committees comprise the most senior global and regional executives. Their remit is to oversee a process to ensure that all strategic projects are appropriately resourced, risk assessed and commercially, financially and technically appraised. A similar body, the Investment Committee, performs the same function in respect of proposals regarding minority investments. Depending on the outcome of the discussions, the committees’ conclusions are then considered by the board of the relevant Group company for approval.

Global Internal Audit Global Internal Audit (GIA) conducts a range of independent audit reviews throughout the Group during the year and is represented at each Audit Committee meeting. GIA’s plans, results and key findings are presented to, and discussed with, the Audit Committee. The internal audit programme and methodology are aligned to the risk categories and risk assessment parameters established by Global Risk Management. GIA also makes use of risk assessment information at a business level, in planning and conducting its audits. Experian plc Governance Code principle 94 Board Leadership and Company Purpose

Corporate governance report continued

Timeline of shareholder engagement

18, 19, 20, 21, 22, 26, 27 & 28 May Dublin 23, 24 & April 1, 2, & 3 June 22 Jul Nov 25 Nov

1 April 31 March 2020 2021

12 May 21 Jul 16 Sep 11 Nov 28 Jan 23 Mar

Investor virtual conferences and meetings Remuneration engagement AGM Investor and media relations reports provided to the Board

Shareholder and of the AGM, specifically in relation to proposed health advice, and in order to ensure the safety stakeholder engagement enhancements to the Directors’ remuneration of the Company’s shareholders, employees and policy. In November 2020, he provided an directors, shareholders were not permitted to The Code encourages companies and boards, update on the 2020 long-term incentive plan attend the Company’s 2020 AGM. However, we including committee chairs, to seek regular (LTIP) targets, which the Committee had invited shareholders to submit questions, and engagement with major shareholders in order delayed setting and disclosing until there was we also engaged with investors in relation to to understand their views. Boards are also more clarity on the business impact of AGM voting. After the AGM, we updated the encouraged to have a clear understanding COVID-19, and which were disclosed to the Experian website with a document of the views of shareholders. market in November 2020. He also provided a summarising the themes of the questions that In addition, the Code states that the Board further update to investors on the impact of had been received from shareholders. Voting should understand the views of the Company’s COVID-19 on our business and key levels at the AGM were 76.24% of the other key stakeholders and describe how their stakeholders, and shared further insights on Company’s issued share capital. interests have been considered in discussions how we have supported our people during the The 2021 AGM will take place on Wednesday and decision-making. Details regarding key pandemic. 21 July 2021 in Dublin, Ireland, and the specific stakeholders are on page 95. As always, the Chairman is available to meet arrangements for this year’s meeting (in the with investors and did so virtually during the context of COVID-19) are outlined in the Notice Shareholders year (while complying with COVID-19 of AGM which has been sent to shareholders We are committed to open and regular restrictions), as did the Audit Committee or appears on the Experian website, communication and engagement with Chairman, to discuss a wide range of issues, www.experianplc.com. We encourage shareholders at any time of the year, and our including how Experian was handling the shareholders to use proxy voting on the communications with them will always offer pandemic, sustainability, information security, resolutions put forward, all of which (except for invitations to meet with the Chairman or any of risk matters and external audit. procedural resolutions) will be taken by a poll. the Board’s committee chairs. Investors and analysts – The executive team Private shareholders – The Company Board – Investor relations and external runs an ongoing programme of dialogue with Secretary, Charles Brown, oversees communications and media reports are institutional investors and analysts, through communication with private shareholders, and circulated before every Board meeting. which they discuss a wide range of issues ensures direct responses as appropriate in The investor relations report contains a including strategy, performance, management respect of any matters raised by shareholders. commentary on recent market events, share and governance. Experian also engages with The Company issues a ‘Shareholder Questions’ price performance, investor feedback, analyst investors through industry conferences and by card each year, together with the AGM recommendations and investor relations hosting events with members of the senior documentation. As well as placing the themes activities. The external communication and management team. The announcements of the on our website this year, Charles Brown media report was a new report this year, with annual and half-year results and trading responded to shareholders directly, as existing media reporting expanded to provide updates provide opportunities for us to answer appropriate, following the meeting. detail of upcoming communications campaigns, questions from analysts, covering a wide range Investor relations app – This contains key issues, media coverage and spotlights on of topics. This year, executive management information about our financial performance, various issues (for example, the naming of attended virtual conferences and investor together with reports, presentations and news Experian North America as #1 Top Workplace meetings in May and November 2020. of upcoming events. by the Orange County Register for dedication Annual General Meeting – The AGM provides to culture). The Chief Communications Officer Website – Our website is an important channel a valuable opportunity for the Board to provides regular updates at Board meetings. for communicating with all stakeholders, communicate with shareholders and, in normal including shareholders. All material information Engagement with investors – The Chairman years, to meet them informally before the main reported to the regulatory news services is of the Remuneration Committee wrote to our business of the meeting. In response to published at www.experianplc.com/investors/ major shareholders and the main UK and US COVID-19, restrictions had been introduced by regulatory-news together with copies of annual proxy advisory bodies twice this year. In April the Irish Government in relation to travel and and half-year results announcements and 2020, he provided an update on the Group’s public gatherings at the time of the 2020 AGM. trading updates. proposed approach to remuneration, ahead To comply with these restrictions and public Code principle Experian plc Annual Report 2021 Board Leadership and Company Purpose 95

Other stakeholders Further information concerning Group-wide engagement with key stakeholders is on pages 24 and 25 in the Strategic report. Board activities regarding key stakeholders, including engagement, are summarised in the table below. Shareholder engagement has been considered earlier.

Stakeholder Responsibility Relevant activities during FY21 Summary of stakeholder views/actions

Board The Board report in March includes an There had been a significant increase in Experian’s NPS, and Experian’s reputation update on clients and consumers, as a trusted company continued as the highest scoring brand attribute, for the including (for client) Net Promoter Score fifth year in a row. Our clients (NPS) metrics, top-performing NPS Client satisfaction had increased for every journey touchpoint with high ratings in and consumers attributes and areas that require account relationship management. improvement. In response to the COVID-19 pandemic, clients felt that Experian partnered well On consumers, the reporting includes with them and provided the vital support and solutions they needed to adapt to brand awareness, trust in the Experian their new challenges. brand and the level of complaints. There had been improvements in brand trustworthiness, and a decrease in complaints in the USA and Brazil.

Board The Chief Executive Officer reports on The Board noted and supported the actions being taken in response to COVID-19, Governance corporate responsibility at each scheduled including: Board meeting. –– Helping vulnerable communities with charitable donations, donations of personal Our At least once a year, the Global Head of protective equipment, over 3,500 hours of volunteering in March 2020, provision of communities Corporate Responsibility presents to the products, tools and education resources, and work with regulators to ensure that Board. credit scores remained unaffected by payment holidays. Highlights this year included our response –– Scaling of global efforts to drive our financial education recovery programme, to COVID-19, supporting vulnerable United for Financial Health. communities, our impact in FY20 and our –– The Board was updated on the work completed during FY20 to amplify the commitments. Group’s societal impact, which included 13.8 million more people reached through the Group’s Social Innovation products, 54,500 hours of volunteering, and an 8% reduction in the Group’s carbon footprint. The Board supported the Group’s commitment to becoming a carbon neutral business in our own operations by 2030. Board, Pulse survey updates to the Board. The Board was updated and considered the actions taken in response to our various Nomination Board reporting at every scheduled Board COVID-19 sentiment surveys: and Corporate meeting (COVID-19 and Human Resources –– Clear communication around business outlook, approach to job protection and Our people Governance sections of Board report). financial impact. Committee, People Strategy, Talent and Culture update –– The approach to equipment access and reimbursement for critical work items. Remuneration to the Nomination and Corporate –– Well-being and resilience support. Committee Governance Committee. –– Continued focus on Experian’s role as a socially responsible employer. Direct feedback to the Board from George The Nomination and Corporate Governance Committee was updated on the five Rose, Remuneration Committee Chairman, global people strategic focus areas in response to insights from employees. These who met virtually with the UK and Ireland focus areas included preparing Experian for further growth, putting people first in Experian People Forum in the UK and order to create a compelling employee experience, and growing world-beating Ireland in March 2021. technology leaders. Confidential Helpline updates to the uditA Committee. Board Annual update to the Board on suppliers, Views of Experian colleagues and suppliers are surveyed on a regular basis to give which includes details of engagement, the a full picture of key relationships. The results are used to highlight areas of focus for Group’s Supplier Relationship relationship development. Our Management programme (SRM) and Experian runs a collaborative global SRM programme with its suppliers, which suppliers supplier views. includes: Annual Board review of the Group’s –– Executive sponsorship to ensure two-way communication at a strategic level. Modern Slavery Statement. –– Regular forums for dialogue in quarterly business reviews. –– Periodic 360-degree surveys to understand suppliers' views. –– Maturity model to gauge the maturity of each relationship and identify next steps to progress. Board, Audit Board members receive regular Board and During the year, a Group subsidiary, Experian Limited, received an enforcement Committee Audit Committee updates from the Group notice from the UK Information Commissioner's Office (ICO) in relation to the General Counsel regarding regulatory marketing services Experian provides in the UK. The contents of the notice and Governments engagement, and any ongoing regulatory views of the ICO were considered, and a decision was made to appeal on the basis matters. that the Group considers the ICO’s view to have gone beyond the relevant legal There is ongoing Compliance reporting to requirements. The Board and Audit Committee have been regularly apprised on this the Audit Committee, including Compliance matter during the year. training. There were ongoing regulatory inquiries in respect of other matters during the year, Audit Committee Risk Management and the Board and Audit Committee receive regular updates on the matters being reporting includes legislative/regulatory considered by regulators. Our response to these inquiries will also take into matters. Any relevant government affairs consideration the regulatory position on the relevant inquiry. matters are also considered by the Audit Committee and the Board. Experian plc Governance Code principle 96 Board Leadership and Company Purpose

Corporate governance report continued

Workforce engagement Considering our stakeholders In considering the acquisition, the Board The Code requires companies to select one or a in our decision-making reviewed the stakeholder impact analysis which had been prepared (and which is combination of prescribed methods for the The Code also recommends that the Board prepared for all acquisition business cases). Board to engage with the workforce. If a should describe how stakeholder interests The analysis identified the following particular method is not appropriate for a have been considered in Board discussions and stakeholder impacts and actions/mitigations: company, it may explain the alternative decision-making. We have processes in place arrangements in place and why these are to capture and consider stakeholders’ views Evaluation of the acquisition indicated that considered effective. The Experian Board has (including the matters contained in Section 172 the combination of the two businesses would always felt well informed about workforce of the UK Companies Act 2006, on a voluntary enhance the innovation, quality and views and matters, including in relation to pay basis) and feed them into Board decision- completeness of product offerings in Spain. and related policy arrangements for the making. The transaction provides exciting growth broader employee population. As a result, no All material business cases considered in the opportunities for both the Axesor employee single approach recommended in the Code was base and the Experian Madrid employees. considered appropriate for our business. The Group (for example, mergers, acquisitions and major capital investments) include an analysis Initiatives would be implemented across the Board instead adopted a combination of combined organisation to optimise methods to comply with the Code’s of the stakeholder considerations, anticipated impact and mitigations. This process, which has efficiencies and protect our Benchmark EBIT. requirements. These are summarised below, Employees of the combined organisation as and include: been reinforced, helps the Board to perform the duties outlined in section 172 of the UK well as the Workers Council will be engaged There are regular people and sentiment Companies Act 2006 and provides assurance to to ensure a smooth and optimal cultural survey updates to the Board (including the Board that potential impacts on integration. COVID-19 specific surveys this year), and stakeholders have been considered in the The integration plan for the business reporting at every scheduled Board meeting development of the proposal. considered the alignment of suppliers. There on people matters. People, talent and culture was some customer crossover, for which An example of how this process works in updates are also provided to the Nomination combined management plans were made. and Corporate Governance Committee, practice is outlined below, where Board The acquisition was expected to have a offering a valuable insight into workforce consideration of a strategic acquisition included meaningfully positive long-term impact on all matters. a review of the standing stakeholder impact analysis. relevant stakeholders, and no material Any relevant business cases reviewed community or environmental impacts by the Board include an evaluation of Acquisition of Axesor in Spain were anticipated. potential impacts of the transaction on the Group’s stakeholders, including employees. In November 2020, the Board reviewed, Workforce policies and practices considered and approved the acquisition of The Remuneration Committee annually Axesor, one of the largest independent business The Board is expected to ensure that: considers an extensive paper setting out information (BI) providers in Spain. workforce policies and practices are consistent details of all-employee pay and workforce with the Company’s values; that they support policies across Experian. The discussions on The acquisition of Axesor’s well-established its long-term sustainable success; and that the this topic provide helpful insights for framing BI data assets allows the enlarged business workforce can raise any matters of concern. pay considerations. to offer a highly differentiated consumer An example of the alignment of policies and The Remuneration Committee Chairman information 'one-stop' proposition to new and practices is how the Group manages annually attends a meeting of the UK and existing customers in Spain. Spain is a core and anti-bribery and anti-corruption. Experian has a Ireland Experian People Forum (see Our strategic market for Experian EMEA, and the strong compliance culture, which is at the heart people, in the table on page 95), providing the transaction provides Experian with a more of our strategy for ensuring we comply both opportunity to gain first-hand feedback in diverse, scaled and resilient business, with the laws that apply to our business and two-way discussions with the workforce, benefitting from enhanced and highly with our Global Code of Conduct. The Board sets which is invaluable. The employee insights complementary customer coverage. There the tone and leads by example and is one of the and views gathered are shared with the full is also the opportunity to realise substantial most important influences on the Company’s Board, allowing the Board to hear directly cost synergies. commitment to preventing bribery and from the wider workforce. A briefing paper was circulated to the Board corruption. Our Anti-Corruption Framework sets out our zero-tolerance policy on bribery In normal years, the Board would meet ahead of its November 2020 meeting, outlining and corruption in any form, and this message is with employees physically outside the the strategic rationale for the transaction, as reinforced through mandatory annual training Boardroom environment. Clearly, COVID-19 well as the financial evaluation and deal for employees. We also extend this has impacted on the Board’s ability to engage structure. The Group’s Chief Investment Officer framework to our third-party network and in this way during this year. attended the meeting and presented the business case to the Board. The Board noted business partners, which helps to instil our In coming to this approach, the Board debated that Axesor aligned with Experian global BI values in every aspect of our business. We updates from management on the strategic priorities and that Experian would apply due diligence and careful screening to implementation of the UK Corporate integrate administrative, financial, and HR intermediaries such as agents, representatives, Governance Code, and the information it already functions. resellers and service providers and train them received and reviewed regarding the Experian in our policies. workforce, and was satisfied that the approach was appropriate for Experian and that the Board keeps workforce considerations to the fore in its deliberations. Code principle Experian plc Annual Report 2021 Division of Responsibilities 97

Division of responsibilities

The Code principles regarding the role of the Chairman, the desired characteristics of the Chairman and his duty regarding Board relations and contributions are outlined in the Chairman’s letter of appointment. A summary appears in the table below. The table also summarises how there is a clear division of responsibilities between the leadership of the Board and the executive leadership of the business.

Chairman Running the Board effectively and ensuring that the Board plays a full and constructive part in developing and determining the Group’s strategy and overall commercial objectives Promoting the highest standards of integrity, probity and corporate governance throughout the Group and particularly at Board level Ensuring that the Board receives accurate, timely and clear information on the Group’s performance and its issues, challenges and opportunities Ensuring effective communication with the Company’s shareholders by the CEO, the CFO and other executive management; and ensuring that the Board develops an understanding of the views of the Company’s major shareholders Facilitates the non-executive directors’ effective contribution to the Board, and ensures constructive relationships between the executive and non-executive directors Primarily responsible for the Board’s leadership and governance, ensuring its effectiveness Governance

Chief Executive Responsible for the Group’s day-to-day business, in line with the strategy, risk profile, objectives and policies set by the Board and its Officer committees Accountable to the Board for the Group’s development and its operations Running the Group’s business and developing the Group’s strategy and overall commercial objectives Implementing, with the executive team, the decisions of the Board, its committees and the principal subsidiaries Maintaining a dialogue with the Chairman on the important and strategic issues facing the Group, and alerting the Chairman to forthcoming complex, contentious or sensitive issues Leading the communication programme with shareholders Chairing the Group Operating Committee

Chief Financial Responsible for managing the financial affairs of the Group, including tax, corporate finance and treasury Officer Works closely with the CEO and COO to manage the Group’s operations Member of the Group Operating Committee

Chief Operating Oversees the Company’s business operations, including information security Officer Ensures the Group has effective operational procedures and controls Responsible for driving the evolution of the Group’s technology and innovation strategy Member of the Group Operating Committee

Senior Provides support and guidance, acts as a sounding board for the Chairman, and serves as an intermediary for other directors Independent Acts as a contact point for shareholders if they have concerns which are not resolved through discussion with the Chairman, CEO or Director CFO Evaluates the performance of the Chairman

Non-executive Constructively challenge and help develop Group strategy directors Scrutinise management performance against agreed goals and objectives Uphold the highest standards of integrity and probity and support the Chairman in instilling the appropriate culture, values and behaviours in the Group Ensure the integrity of financial information and that there are robust financial controls and systems of risk management; determine executive remuneration and succession planning

Group Company Secretary to the Board and its committees Secretary Provides support and guidance to the Board and the Chairman, and acts as an intermediary for non-executive directors Responsible for: corporate governance; listing rules, prospectus rules, and disclosure guidance and transparency rules compliance; statutory compliance and reporting; shareholder services; and corporate responsibility Member (and secretary) of the Group Operating Committee

Group General Responsible for overseeing Experian’s global legal, risk management, regulatory compliance and government affairs functions Counsel Provides the Board and Audit Committee with legal advice, leads on legal, risk and regulatory reporting, and active in public policy advocacy Member of the Group Operating Committee Experian plc Governance Code principle 98 Division of Responsibilities

Corporate governance report continued

Workforce policies and practices Independence (continued) As required by the UK Corporate Governance In terms of the ability to raise matters of Code, the Board considers each of the concern, Experian is committed to achieving the non-executive directors to be independent in highest possible standards of quality, honesty, character and judgment and believes there are openness and accountability, and there is an no relationships or circumstances that are expectation that employees maintain high likely to affect (or could appear to affect) each standards in accordance with the Global Code director’s judgment. of Conduct. There is also a culture of openness and accountability, and all employees are Conflicts of interest, and encouraged to raise any concerns about the external appointments way in which the business is run at an early The Company’s articles of association allow the stage so that any concerns can be dealt with Board to authorise actual or potential conflicts effectively. A confidential helpline, facilitated by of interest. The authorisation procedure an external provider, has been set up for involves Group Corporate Secretariat issuing employees who wish to raise any concerns. guidance and a questionnaire each August, Calls to the Confidential Helpline, and any asking directors to identify any conflicts or actions required, are reviewed by the Audit potential conflicts, which the Board then Committee at least every six months. considers at its September meeting. In addition, directors are expected to advise the Company Non-executive director appointment Secretary of any actual or potential conflicts as Non-executive directors are initially appointed soon as they arise so the Board can consider for three years. This may, subject to satisfactory them at the next available opportunity. In the performance and election or re-election by the Board’s view, this procedure operated shareholders, be extended by mutual effectively during the year under review. The agreement. They normally serve for a Board has also agreed a process whereby maximum of nine years, through three terms, directors’ proposed external or additional each of three years’ duration. appointments are reviewed and considered for approval by the Board. Meetings of non-executive directors In addition to attending Board and committee meetings, the non-executive directors normally meet separately with the Chairman, and sometimes also with the Chief Executive Officer, at the end of each scheduled Board meeting. The non-executive directors also meet privately at least once a year with the Deputy Chairman, without the Chairman present, and did so once during the year to discuss matters including the Chairman’s performance.

Board information All directors receive financial and operational information each month to help them discharge their duties, and there were increased financial and operational updates this year due to the COVID-19 pandemic. Board papers are circulated digitally at least one week before each Board meeting, to ensure directors have time to review them. Directors have access to independent professional advice at the Company’s expense, if they consider it appropriate. No director obtained any such advice during the year ended 31 March 2021. Code principle Experian plc Annual Report 2021 Composition, Succession and Evaluation 99 Nomination and Corporate Governance Committee report

As Chairman of the Nomination and and LGBTQ+), and the Committee noted that Corporate Governance Committee, I the business was strong in terms of am very pleased to report on the work employee commitment, having an inclusive done by the Committee during the culture and diversity and inclusion initiatives, year, and provide some detail of the and that actions were being taken regarding representation, data and harnessing regional Committee’s principal roles and efforts to maximise impact. Mike Rogers responsibilities. There are updates At our March 2021 meeting, as well as Chairman of the Nomination and also on Board composition, diversity recommending the appointment of Jonathan Corporate Governance Committee and inclusion, and this year’s Board Howell to the Board, the Committee evaluation. considered the proposed election/re-election A key responsibility of the Committee is to of directors at the AGM, recommended Dr As Chairman of the Nomination and ensure plans are in place for orderly Board Ruba Borno’s re-appointment for a further Corporate Governance Committee, it is succession, and the Committee regularly three-year term, reviewed the draft corporate my pleasure to present this year's receives and reviews updates on the governance section of the Annual Report, and Governance report on the Committee's activities structure, size and composition of the Board reviewed various company law and during the year. and its committees, to ensure critical skills governance changes. and experience are appropriately refreshed. As noted earlier in the Corporate governance During the year, on the recommendation of report, the Committee also reviewed a people the Committee members, Alison Brittain was strategy, talent and culture update during the appointed to the Board, providing significant year. financial services, consumer-facing, and retail product experience, as well as UK-listed The Committee was in place throughout the company expertise. In addition, the year ended 31 March 2021. Committee recommended the appointment of Members Jonathan Howell to the Board. Jonathan is a highly regarded FTSE 100 Chief Financial Mike Rogers (Chairman) Officer, and has considerable executive and Dr Ruba Borno non-executive UK-listed boardroom Alison Brittain Committee’s key roles experience, which will further enhance the and responsibilities Caroline Donahue strength, depth and effectiveness of the Luiz Fleury Board. The Committee reviews any skills gaps The Board strongly believes that good Jonathan Howell* and the current Board composition (and governance and strong, responsible, balanced Deirdre Mahlan Board members’ expertise, diversity and leadership are critical to business success and George Rose tenure) to allow for smooth succession to creating both long-term shareholder value * From 1 May 2021 planning. A key current focus of the and a strong, sustainable culture. As a Committee relates to Audit and Remuneration Committee, our responsibilities include: Committee Chairman succession, given the Ensuring we have appropriate procedures for Quick facts anticipated departures of Deirdre Mahlan and nominating, selecting, training and evaluating Mike Rogers was appointed Chairman George Rose from the Board in the medium directors, and that adequate succession of the Committee in July 2019, when term, following completion of nine years' plans are in place. he was appointed as Chairman of the Board tenure. Reviewing the Board’s structure, size, Company. The Committee has also maintained its focus composition and succession needs; The Board considers the Committee on the executive talent pipeline and senior considering the balance of membership and members to be independent management succession plans, reflecting the the Board’s required balance of skills, non-executive directors, in line with Board’s responsibility to ensure appropriate experience, independence, knowledge and the UK Corporate Governance Code. plans are in place. A detailed succession diversity. The Committee met four times during planning update was provided at the January Identifying and nominating, for the Board’s the year ended 31 March 2021. 2021 Committee meeting. Included in the approval, suitable candidates to fill vacancies The Chief People Officer and the Chief update was an analysis of executive for non-executive directors and, with the Communications Officer are invited to management succession coverage. The Chief Executive Officer’s assistance, attend certain meetings. impacts of COVID-19 on attrition (which had executive directors. Board appointments are The Chief Executive Officer is also reduced) were also discussed by the made on merit and against objective criteria, invited to attend meetings and Committee. to ensure the Board maintains its balance of provides valuable contributions. Diversity, equity and inclusion are essential to skills, experience, independence, knowledge Experian’s purpose, and the Committee and diversity. received and discussed a detailed update Reviewing legislative, regulatory and Quick link from our Chief People Officer, Jacky corporate governance developments and experianplc.com/ Simmonds, in January 2021. Experian is making recommendations to the Board; and about-us/ focused on several dimensions of workforce ensuring that the Company observes the corporate-governance/ diversity (including race/ethnicity, gender, board-committees/ standards and disclosures recommended by age/generation, working parents/families the UK Corporate Governance Code. Experian plc Governance Code principle 100 Composition, Succession and Evaluation

Nomination and Corporate Governance Committee report continued

Committee activities during FY21

April — July November January March

Recommended the appointment Continued important discussions Reviewed and discussed a people, Received and considered a of Alison Brittain as an regarding Board succession, with talent and culture update, Board succession update. independent non-executive a focus on plans regarding Audit including the identified strategic Recommended to the Board the director of the Company. Committee Chairman succession. pillars, key risks, people directors due to be considered Discussed a detailed AGM briefing Reviewed the Committee’s implications and insights gained for election/re-election at the from the Company Secretary and performance during the year from business leaders. 2021 AGM. the Chief Communications Officer, against its terms of reference, and Reviewed an update on executive Considered the annual company including voting results, concluded that it was operating succession, including specific law and governance update. shareholder feedback and effectively. plans for key operational and Recommended the re- engagement that had taken place Agreed the structure of the FY21 functional roles. in the lead-up to the AGM. appointment of Dr Ruba Borno as Board, committee and director Reviewed an update on diversity, a director of the Company for a Discussed an update on the evaluation. equity and inclusion, outlining the further three-year appointment agreed focus areas from the FY20 Experian philosophy and term. Board evaluation. approach, where the business Recommended the appointment Discussed Board composition was strong, and where further efforts are needed. of Jonathan Howell as an and, in particular, approved role independent non-executive specifications for new director of the Company. non-executive directors.

Board, and executive committee (and direct reports), composition

As at 1 May 2021

Balance of executive and non-executive directors Ethnicity of the Board

Independent Chairman 1 White – European 6 Executive 3 White – North American 3 Independent non-executive 7 Non-white ethnic group – Arabic 1 Total number of directors 11 Non-white ethnic group – South American 1 Total number of directors 11

Tenure of the Board Non-executive director skills*

<1 year 2 Financial services 4 1 to <3 years 2 Serving listed company executive 4 3 to <6 years 4 Consumer/Digital 4 6 to <9 years 2 Financial expertise 3 9+ years 1 Technology/Information 3 Total number of directors 11 Consumer packaged goods 1 Average Board tenure 5 years, 9 months Manufacturing/Large projects 1

Gender diversity of the Board Gender diversity of executive committee and direct reports

Men 7 (64%) Men 74% Women 4 (36%) Women 26% Total number of directors 11

* Table signifies the number of non-executive directors, as at 1 May 2021, considered to have that particular expertise. Individual non-executive directors may have more than one area of expertise. Code principle Experian plc Annual Report 2021 Composition, Succession and Evaluation 101

Board composition The Nomination and Corporate Governance also been a recent focus of the Committee. As at the date of approval of the Annual Report, Committee regularly evaluates Board In terms of near- and medium-term skill the Board comprises the independent composition from a number of perspectives, requirements, the Committee’s focus will Chairman, Mike Rogers, three executive including diversity and orderly succession. The include non-executives who provide good directors and seven independent non-executive Committee’s discussions during the year geographic representation in terms of directors, including the Deputy Chairman, concluded that there should continue to be a Experian’s markets, and technology, George Rose. George is also the Chairman of focus on diversity, including gender and decisioning, advanced data and analytics will be the Remuneration Committee. Deirdre Mahlan ethnicity, and there was a preference where considerations also. possible for recruiting non-executive directors is the Chairman of the Audit Committee and As with all Board appointments, the Committee who are serving executives at other Mike Rogers is the Chairman of the Nomination recognises the continued importance of culture, organisations, and who have recent and and Corporate Governance Committee. fit and international experience when assessing relevant financial experience. Audit and potential candidates for the Board. Remuneration Committee chairmanship has

Process for Board appointments

When making Board appointments, the agent, who then prepares an initial longlist of In due course, a tailored induction programme Governance Committee reviews and approves an outline candidates. The Committee defines a shortlist is developed for the new director. brief and role specification, and appoints a and holds interviews. Ultimately, the We engaged Russell Reynolds as the specialist search agent for the assignment. Committee makes a recommendation to the search firm involved with the recruitment of Board for its consideration. Following Board We disclose the name of the search agent and Alison Brittain and Jonathan Howell, our most approval, the appointment is announced in line any other connection they have with Experian recently appointed non-executive directors. with the requirements of the UK Financial in our next Annual Report. The specification They also provide other executive search Conduct Authority's (FCA’s) Listing Rules. and the search are discussed with the search services to the Group.

Step 1 Step 2 Step 3 Step 4 Step 5 Committee reviews The agent prepares The Committee The Committee Following Board and approves an an initial longlist then considers a makes a approval, the outline brief and of candidates shortlist and we recommendation appointment is role specification and hold interviews to the Board for announced in appoints a search its consideration line with the agent for the requirements of the assignment FCA’s Listing Rules

Induction and training Alison's induction included: Diversity The Company has procedures to ensure newly Business/Operations – briefings, regional and We believe that diversity and inclusion are appointed directors receive a formal induction, global business overviews and product essential to our purpose of creating a better involving meetings with senior executives and demonstrations in respect of a number of tomorrow – making positive change in the functional leaders. A tailored induction business areas, including: Technology and world by actively working to open up access to programme is designed for each new Information Security, Consumer Information financial systems to marginalised communities. non-executive director who joins the Board, to Services, Decision Analytics, Vertical Markets, Our core philosophy is that our employees are ensure they are equipped with a foundation of as well as business market and financial people first, and we welcome people of all knowledge and materials necessary to add overviews. backgrounds to bring their whole selves to our value. Individual induction programmes are team. usually completed within the first six months of Corporate/Governance – focused briefings on The Board’s diversity policy is unchanged. We a director’s appointment and the Company corporate governance, audit and investor strongly believe that diversity throughout the Secretary provides assistance and support relations and communications. Other areas Group and at Board level is a driver of business throughout the induction process. The covered include remuneration, talent, people success. We respect, value and welcome all programmes are reviewed regularly to consider and reward; a financial overview, budget and forms of diversity, and seek to reflect the directors’ feedback and are continually updated capital strategy; strategic planning, corporate diversity of our clients, investors and employees and improved. During the year, the Board development and competition overview; legal in our Board. We recruit talented Board appointed Alison Brittain as an independent compliance, regulation, government affairs, risk members, who have the appropriate mix of non-executive director, and Alison’s induction management; and corporate responsibility. skills, capabilities and market knowledge to took place via video technology in late 2020. A ensure the Board is effective. When recruiting, similar induction has been arranged for we look across all sectors and non-traditional Jonathan Howell, to take place in June/July talent pools, and we require diversity on our 2021. candidate shortlists. Experian plc Governance Code principle 102 Composition, Succession and Evaluation

Nomination and Corporate Governance Committee report continued

Diversity (continued) In addition, the February 2021 Parker Review success. At Experian, we embrace diversity and Committee update confirmed that we met their appreciate different perspectives and the Although we do not publish specific Board Board ethnic diversity recommendations. We unique value each employee brings. diversity targets, the female representation of recognise the significant benefits of a diverse Fundamentally, we do not discriminate against the Board is 36%, which exceeds the current Board and, when recruiting, will continue to anyone based on race, colour, religion, gender, Hampton-Alexander Review recommendation seek to address any diversity gaps on our sexual orientation, gender identity or of 33%. We also continue to monitor closely the Board, including gender and ethnicity. expression, national origin, disability, age, numbers submitted as part of our Hampton- covered veteran status, or any other As well as the Board policy outlined above, the Alexander commitment around our executive characteristic protected by law. The Code of Group’s Code of Conduct further outlines our committee and their direct reports. The Conduct applies to everyone at Experian, approach and how we think about diversity. proportion of women in this population stands including contractors, suppliers and others who We understand the fundamental value that at 26%. As part of our commitment to continue do business with us. Contractors and suppliers diversity, equity and inclusion bring to our to improve upon our gender diversity, we are performing work on behalf of Experian are business, and there are many ongoing putting in place a three-year target of 30% for expected to comply with the law and the initiatives to support a work environment in this group. This, alongside the targets set for portions of the Group’s Code of Conduct that which everyone is treated with fairness and senior and mid-level leaders within Experian, apply to them. will ensure a strong pipeline of women for our respect, has equal access to opportunities and most senior positions over time. resources, and can contribute fully to our

Board evaluation

The UK Corporate Governance Code specifies FY21 was Year 2 of our Board’s three-year extremely well and in line with first-class that the Board should undertake a formal and review cycle. Last year (FY20), an independent governance. Board dynamics were considered rigorous annual evaluation of its own external evaluation was conducted by to be excellent, with specific characteristics performance and that of its committees and Manchester Square Partners to provide the including inclusivity, supportiveness, individual directors, and that the Board should Board with greater insights into its constructively challenging and responsible. also have an externally facilitated evaluation performance and to identify opportunities to The Board was noted as being unified and at least once every three years. further increase and improve its overall aligned, with the Experian agenda as the effectiveness. The conclusion of the external priority. evaluation was that the Board was functioning

Year 1 – FY20 Year 2 – FY21 Year 3 – FY22 Evaluation by external facilitator Internal review against detailed Questionnaire-based internal evaluation Year 1 review

Following that external evaluation, the Board Group Corporate Secretariat reviewed progress against the agreed agreed areas of focus for FY21. This year, Board FY21 areas of focus and an update was presented at the Board meeting the second year of our cycle, involved the in March 2021. Board performing an internal evaluation of progress against the FY21 areas of focus That update, and the Board review and discussion of its actions, and the and the resulting actions, as well as actions of management, against the FY21 areas of focus formed the agreeing new areas of focus for the coming basis of this year’s review from a Board perspective, and new FY22 year. The third year of the cycle, to be areas of focus were agreed. undertaken in FY22, will be a questionnaire- based internal evaluation. Committees A performance evaluation discussion was included on the agendas of This year’s internal evaluation was the Board committees, supported by an analysis of how each committee structured as follows: was performing against the key areas in its terms of reference.

Individual Meetings were held between each director and the Chairman directors in March 2021, in relation to each director’s performance. The Deputy Chairman and Senior Independent Director evaluated the Chairman, taking account of input from other directors. Code principle Experian plc Annual Report 2021 Composition, Succession and Evaluation 103

Progress against the focus areas highlighted in the FY20 review

Area Focus Progress

COVID-19 As the pandemic evolved, the Board took decisive action to agree a Additional Board meetings and updates were initiated at an early pandemic set of priorities and goals for the Group, the purpose of which was to stage, and took place in April 2020 and June 2020, in addition to the establish measures of success for the Board’s role in navigating the scheduled meetings in March, May and July 2020. This allowed the emergency. These covered: maintenance of operations while keeping Board to regularly oversee the actions being taken by the Group in our people, clients and suppliers safe and healthy; preserving the response to the pandemic and to receive regular updates on health of the business (including its financial health); recovering trading. strongly as the emergency subsides; and using the Group’s Early action was taken to ensure an appropriately focused Board capabilities to help communities survive and recover rapidly. agenda, principally through the inclusion of a 'COVID-19 Board It is expected that a significant Board focus for the coming year will Report' covering People, Operations, Consumer/Regulatory, be how the Group adapts, adjusts and recovers from the situation Funding, Societal Support, Return to business-as-usual, and the and lessons learned that could have relevance for the evaluation and Group’s global response. Reporting on many of these matters was mitigation of emerging risks. The Board will play a key part in this also enhanced in the regular updates to the Board between

process, guided by the agreed priorities and goals. meetings. Governance The Audit Committee requested, and discussed, a management report specifically related to the potential impacts on the Group’s risk environment arising from COVID-19, including the impact of the Group’s principal risks and key activities undertaken within the Group’s pandemic response plans. Board The Board’s FY21 priority will be on non-executive succession, Alison Brittain was appointed as an independent non-executive succession particularly chairmanship of the Remuneration and the Audit director on 1 September 2020. and talent Committees, as the current role holders approach the natural end of Jonathan Howell was appointed as an independent non-executive their Board terms of appointment. director on 1 May 2021. The focus for the Chairman and the Board will be on replacing the The Nomination and Corporate Governance Committee continued to significant breadth and depth of experience, insight, advice and regularly discuss Board composition and succession (including challenge that will leave the Board, ensuring the right seniority, Committee chairmanship succession) and reviewed the role experience (including financial) and cultural fit of any successors, specifications for the new non-executive director appointments and and that there is a smooth transition (and comprehensive induction) potential future appointments. for any new appointments. The Nomination and Corporate Governance Committee continued to As part of its regular meetings and visits, the Board spends time with receive in-depth updates on senior leadership succession, diversity the senior leadership team and has opportunities to meet and inclusion, and people strategy, talent and culture, including up-and-coming talent within the organisation. There is also an updates on the Group’s people development programmes. annual formal review of talent, discussion of specific appointments as needed and updates on talent development programmes. The The Board continued to spend time with senior management and development, attraction, retention and diversity of talent is also an high-potential talent within the business. This was undertaken via area of increasing focus for the Board, as the Group evolves into new video technology during the year, and it remains the intention that and highly competitive business areas, balancing internal the Board will re-commence visits to the Group’s key business development with key external hires. locations when it is safe to do so in line with COVID-19 travel restrictions and public health guidance.

FY22 focus areas agreed in the FY21 review

Area Focus Culture and As the Board concluded in this year’s internal evaluation, the Board has continued to operate effectively despite not meeting Social capital together physically since January 2020. Since that time, two new independent non-executive directors have joined the Board. Although there may be some changes to the way the Board operates in the future, the Board recognises the importance of remaining closely connected with the business and fellow directors, in order to lead by example and continue to promote and monitor the desired culture throughout the Group. The Board intends to focus on ways to further strengthen the culture and rebuild social capital to ensure that the strong culture of the Board is not impacted by the COVID-19 pandemic, and that it continues to operate as a high-performing collegiate team. Environmental, The Group continues to progress a number of ambitious programmes of ESG-centred activities, which include considerations Social, and around climate change, gender and ethnicity, diversity, pay, monitoring of suppliers, reporting frameworks, and the positive role of Governance the Group and data in society. (ESG) The Board, through its oversight of the Group’s strategy and its responsibilities, will continue to evaluate how ESG issues affect key aspects of the business and what Experian’s ambitions and goals should be as a long-term sustainable business. Experian plc Governance Code principle 104 Audit, Risk and Internal Control Audit Committee report

I am pleased, as Chairman of the Audit The Committee responded quickly to the Committee, to report on how the impact of COVID-19 on its areas of Committee carried out its responsibility. Soon after the start of the responsibilities during the year, in pandemic, the Committee requested a particular with the ongoing COVID-19 COVID-19 specific risk update from management, which was presented to the global pandemic, and how we Committee early in FY21. The initial view of Deirdre Mahlan discharged our duties. the Committee was that COVID-19 had Chairman of the Audit Committee impacted some of the Group’s principal risks The Committee’s remit is to: review and – for example, risk considerations related to monitor the integrity of the Group’s financial employees working from home. For each risk reporting, ensuring that any judgments made I am pleased to report on the area impacted, the Committee was advised of are appropriate; ensure the external auditor the mitigating actions that had been put in Committee’s activities during the is independent and effective in its role, and year, especially with 2020 being a place. These included, for the risks associated recommend the appointment of the external with working from home, enhanced technical particularly difficult year given the auditor; and ensure that the Group has an measures to restrict, secure and monitor ongoing COVID-19 global pandemic. effective internal control framework, devices, increased phishing testing, robust including the risk management system. The compliance requirements for employees with Committee members’ collective international access to sensitive data and implementation and financial experience enables them to act of critical security updates. A similar analysis effectively in these areas, and the work of the was discussed by the Committee in respect of Committee during the year covered all each of the impacted Group principal risks. elements of its remit. Members The Committee was in place throughout the This report contains details of the significant year ended 31 March 2021. Deirdre Mahlan (Chairman) issues we considered in relation to the Dr Ruba Borno financial statements and how these were Alison Brittain addressed, and our process for concluding Caroline Donahue that this Annual Report is fair, balanced and Luiz Fleury understandable. Jonathan Howell* George Rose * From 1 May 2021 Committee’s key roles and responsibilities Monitoring the integrity of the financial Quick facts statements and reviewing significant Deirdre Mahlan has chaired the Regular attendees at meetings include financial reporting judgments contained Committee since January 2015. Deirdre the Chairman, the executive directors, in them. is a qualified accountant with an MBA the Group General Counsel, the Head of Reviewing internal financial controls and has many years’ experience in Global Internal Audit, the Global and the Group’s internal control and risk senior finance roles, most recently as Financial Controller, the Chief management systems, with special attention Chief Financial Officer of Diageo plc. Information Officer, the Chief Information this year on COVID-19 specific risks. All members of the Committee are Security Officer and representatives Reviewing the effectiveness and quality independent non-executive directors from KPMG LLP (the external auditor). of the audit process and the independence and the Board considers them to have Other invitees include the Global Head of and objectivity of the external auditor. Risk Management and the Global Head an appropriate level of experience. Monitoring and reviewing the effectiveness of Compliance. Deirdre Mahlan, George Rose and of the internal audit function. At the end of each scheduled meeting, Jonathan Howell are considered to have Developing and implementing policy on the external auditor and the Head of recent and relevant financial experience, engaging the external auditor to supply Global Internal Audit meet with the in line with the UK Corporate non-audit services, taking into account Committee to discuss any matters Governance Code. relevant guidance. without management being present. The Committee met four times during Approving the external auditor’s The Committee is authorised to seek the year, with each scheduled meeting remuneration and terms of engagement, outside legal or other independent timed to coincide with key dates in and making recommendations about its professional advice as it sees fit. the Group’s financial reporting and re-appointment. audit cycle.

Quick link experianplc.com/ about-us/ corporate-governance/ board-committees/ Code principle Experian plc Annual Report 2021 Audit, Risk and Internal Control 105

Committee activities during FY21

May September November March

Reviewed the preliminary results Considered the FY21 external Reviewed the half-yearly Reviewed the principal announcement and the Annual audit plan with the external financial report announcement, accounting policies, pre-year-end Report, and papers in relation to: auditor, including its scope, and papers in relation to: accounting matters and updates – year-end accounting matters materiality and the expected – half-year accounting matters on the year-end financial impact of COVID-19. The plan statements and financial review. – the preparation of financial included the external auditor’s – the preparation of the statements on the going half-yearly report on the going Reviewed the external auditor’s response to developments in pre-year-end report, including concern basis (see also note 2 the business during the year, concern basis to the Group financial scope, status and controls developments in the audit – a fair, balanced and findings. statements) process, the Group’s risk understandable assessment Reviewed fraud and Confidential – the making of a viability assessment and the coverage – and the making of Helpline update. Governance statement recommendation to of the audit. management representations. the Board Reviewed the Group’s Tax Policy. Reviewed the effectiveness of Although not required for the – the fair, balanced and the external auditor (see page half-year, reviewed the viability Reviewed the Group’s non-audit understandable assessment 107 ‘External auditor’). modelling assessment that had fee policy and the Group audit – and the making of Evaluated the performance of taken place, given the situation fee. management representations. the Global Internal Audit function with COVID-19. Reviewed the Global Internal Reviewed the 2020 Annual (see page 107 ‘Internal audit’). Reviewed the external auditor’s Audit strategy and annual plan. Report to ensure it was fair, Received and discussed with half-year report, including Considered the re-appointment balanced and understandable management an update in independence considerations. of the external auditor. and provided information relation to a South Africa Reviewed and discussed with enabling an assessment of fraudulent data access matter. management the final Experian’s position and Continued to assess with Enforcement Notice received performance, business model management the impact of from the ICO, the appeal made and strategy. COVID-19 from a risk perspective by the Group, potential business Reviewed and discussed (including information security), impacts of the notice, and the with management the draft noting the COVID-19 risk associated accounting Enforcement Notice received assurance that had been considerations. from the UK Information undertaken. Debated extensively with Commissioner's Office (ICO), and Reviewed the Compliance management the restructuring the associated accounting Management Programme charge for the transformation impact. overview from the Global Head of programme in the UK and Reviewed the Risk Management Compliance; assessed the Ireland and other restructuring Framework and Summary of Compliance terms of reference initiatives. Assurance, including a COVID-19 and received annual compliance Received an update and specific risk update. training. Committee training from the Reviewed the external auditor’s Reviewed fraud and Confidential external auditor in respect of year-end report, including Helpline updates. forthcoming audit industry independence considerations. Reviewed the Group’s Treasury changes (including strengthening Reviewed non-audit fees. Policy. of internal controls frameworks, known as ‘UK SOX’), new or Approved the Committee’s impending accounting standard annual meeting schedule and changes, and the likely impacts reviewed the Committee’s and considerations for Experian. performance against its terms of reference.

All meetings

Reviewed an information security update Reviewed full or summary risk management An Internal Audit update was presented by from the Chief Information Security Officer at updates at each meeting, including status of the Head of Global Internal Audit at each each scheduled meeting. This is a standing and changes to the Group’s principal risks, meeting, and discussed by the Committee, item on the Committee agenda, given its material litigation, regulatory developments including the status of the audit plan, audit importance to the Group. Included this year and details of any emerging risks, with findings and themes in the reporting period, were updates on the impact of COVID-19 on particular focus on COVID-19 specific risks. and progress on any overdue audit actions. information security, for example in relation to any increased risk from employees working from home and the resultant changing threat landscape. Experian plc Governance Code principle 106 Audit, Risk and Internal Control

Audit Committee report continued

Significant issues The table below summarises the significant matters considered by the Committee in relation to the Group and Company financial statements and the way they were concluded. These matters, together with any other significant considerations of the Committee, are reported to the Board. The minutes of each Audit Committee meeting are also circulated to all members of the Board.

Matter considered Challenge and conclusion Impairment review – goodwill and other intangible assets A summary of the annual impairment analysis and underlying process was The Committee scrutinised the methodology and assumptions applied by provided to the Committee. management. The analysis indicated that, following a challenging year impacted by the effects In respect of Asia Pacific, the Committee challenged management on the of the COVID-19 pandemic, growth in Asia Pacific was adversely affected and the longer-term strategy of the region and the extent to which this could be estimated recoverable amounts of the assets were below their carrying value. captured in the forecasts used. The Committee debated with management the Accordingly, an impairment of goodwill in the region was proposed. best approach to including forecasting adjustments. The recoverable amounts of the assets of all other segments continued to The Committee concurred with management’s conclusions that an sufficiently exceed their carrying amounts. impairment of goodwill was required in Asia Pacific. The Committee noted the headroom and the sensitivity to changes in assumptions and concurred with the proposed disclosure of these in note 20 to the Group financial statements. Impairment review – other assets A summary of the review process for other assets was provided to the The Committee scrutinised the methodology and assumptions applied by Committee. management. The review indicated that an impairment was required in one of the Group’s The Committee noted the changes in trading performance against the forecast intangible assets, and that an impairment reversal was required in one of the of the associate and debated with management the future strategy for this Group’s associates. investment. The Committee concurred with management’s conclusion that a write-down of intangibles was required, an impairment reversal in associates was required and that the proposed accounting was appropriate. Going concern and viability The Committee reviewed the assessment of going concern and viability. The Committee scrutinised the key risks and viability scenarios, the assumptions used and the methodology. The Committee concurred with management’s assessment that the Group is a going concern and is expected to remain viable. Acquisitions The Committee received an update on the acquisitions made during the year The Committee noted these deals included elements of contingent notably the acquisitions of Arvato’s Risk Management division in Germany, consideration and put options, and that an independent external valuer had Tapad, Inc. in North America and BrScan in Brazil. assisted with these valuations along with the acquired assets and liabilities. The Committee discussed with management a refinement to the non-controlling interest policy, in light of these acquisitions. The Committee approved the valuation of the acquisition intangibles and accounting for non-controlling interests. Tax The Committee received a regular update from management on the adequacy of The Committee agreed that the assessment of the uncertain tax positions was provisions in respect of significant open tax matters. The review included details appropriate and that the judgment taken in respect of the year-end provision of ongoing correspondence with tax authorities in the UK, the USA and Brazil in the Group financial statements was reasonable. and the principal areas of tax challenge. The Committee also noted the evolving and complex tax laws that applied to the Group and the uncertainty that these might bring. It concluded that the Group tax risk disclosures were appropriate. Litigation and regulatory matters The Committee received an update and analysis of open litigation and regulatory The Committee concluded that these matters had been appropriately provided matters affecting the Group, including the enforcement notice from the UK for at 31 March 2021. Information Commissioner’s Office. The Committee considered and concurred with the proposed contingent liability disclosures included in the notes to the Group financial statements. Restructuring A summary of potential restructuring opportunities was presented to the The Committee discussed the proposals with management. As the Committee in the first half. performance of the Group strengthened the Committee challenged management to keep the overall programme limited and focused on certain specific areas. The Committee approved the proposed accounting for the programme as a non-benchmark item. Code principle Experian plc Annual Report 2021 Audit, Risk and Internal Control 107

external auditor and we confirm that we have Fair, balanced and understandable – what did we do? complied on a voluntary basis (as a Each year, in line with the UK Corporate Governance Code and the Committee’s terms of non-UK-incorporated company) with the reference, the Committee is asked to consider whether or not, in its opinion, the Annual Report provisions of the UK Competition and Markets is fair, balanced and understandable (FBU) and whether or not it provides the information Authority (Mandatory Use of Competitive Tender necessary for shareholders to assess the Group’s position and performance, business model Processes and Audit Committee and strategy. There is an established process to support the Audit Committee in making this responsibilities) Order 2014 for the financial assessment, and we use a similar process for the Group’s half-yearly financial report. year under review. The main elements of the process are: The key areas to focus on included Effectiveness, audit quality, independence ensuring that: and appointment A list of ‘key areas to focus on’ was At its September 2020 meeting, the Audit previously shared with the Annual Report The overall message of the narrative Committee reviewed and discussed KPMG’s team. The team is reminded of the reporting is consistent with the primary audit strategy for the year ended 31 March 2021. requirement annually, and asked to reflect financial statements. In November 2020, and March and May 2021, this in their drafting. The overall message of the narrative the Committee received detailed updates on the An internal FBU committee considered the reporting is appropriate, in the context of audit’s progress, which included details of the Governance Annual Report in May 2021, ahead of the the industry and the wider economic external auditor’s actions, such as the audit Audit Committee meeting. A wide range of environment. procedures undertaken, the audit’s coverage, the impact of COVID-19 on the audit, the functions are represented on this The Annual Report is consistent with segregation of duties and the status of any committee, including executives from messages already communicated to significant findings, as well as details of key finance, communications, investor investors, analysts and other stakeholders. relations, legal and corporate secretariat. matters arising from the audit and assessments The Annual Report, taken as a whole, is The external auditor also supports the of management’s judgments on them; and fair, balanced and understandable. committee. reviewed the content of the independence letter The Chairman and Chief Executive and the management representation letter, as In advance of its May 2021 meeting, the Officer’s statements include a balanced well as engagement terms. Audit Committee received a near-final view of the Group’s performance and draft of the Annual Report, together with a The Committee formally reviews the prospects, and of the industry and market reminder of the areas to focus on. The FBU effectiveness of the external auditor at its as a whole. committee’s observations and conclusions September meeting. This year, questionnaires were also relayed to the Audit Committee. Any summaries or highlights capture the were provided to Board members, senior big picture of the Group appropriately. Following its review this year, the Audit operational and functional management and Committee concluded that it was Case studies or examples are of strategic senior regional, finance and treasury appropriate to confirm to the Board that importance and do not over-emphasise leadership. As part of the evaluation, the FRC’s the 2021 Annual Report was fair, balanced immaterial matters. Guidance on Audit Committees was reviewed to and understandable, and provided the ensure that best practice was being followed. information necessary for shareholders to The evaluation focused on the four key areas assess the Group’s position and used in the FRC’s May 2015 ‘Practice aid for performance, business model and audit committees’: mind-set and culture; skills, strategy. The FBU statement appears in character and knowledge; quality control, and the Directors’ report. judgment. The Committee also reflected on the assurance on financial statements, the audit teams and communication, as well as considering external regulatory updates on the Internal audit standards and processes. Feedback from external auditor received during the year. An internal evaluation of Internal Audit was stakeholders was also positive, and there was The overall results of the evaluation were reviewed by the Committee at its September good progress in relation to the quality of the favourable, particularly with regard to quality 2019 meeting, as part of the agreed four-year assurance process and the insights provided by and value of the service. There were no evaluation cycle (a full external quality Internal Audit. The assessment against key concerns regarding the independence of the assessment every four years, and follow-up internal metrics indicated that a continued audit team, the technical knowledge of KPMG or interim external quality assessments and focus area should be the time taken to issue the way in which judgments were explained. internal reviews in the intervening period). reports. There was conformance with the International Standards for the Professional The Committee concluded, based on feedback In September 2020, the Committee reviewed Practice of Internal Auditing, and stakeholder and information obtained during its other work, the conclusions of a further internal evaluation feedback on the function was strong, with the that the external auditor had performed of Internal Audit, which comprised: internal team viewed as highly effective, professional effectively, and that the Group and the auditor quality assurance results; post-audit and independent. had complied with relevant guidance. stakeholder feedback; key internal metrics; The Committee also assesses the quality of the self-assessment against the International External auditor audit (along with the effectiveness review Standards for the Professional Practice of Tenure and tendering described above) in the following ways: Internal Auditing and the Code of Ethics by the KPMG LLP (KPMG) has been the Company’s Head of Global Internal Audit; and a survey of Evaluation of external auditor (process auditor since July 2016, following the principal stakeholders for areas requiring described above) – the large majority of conclusion of the audit tender process in improvement. All audits that had been assessed internal respondents agreed that the audit had September 2015. There are currently no using Internal Audit’s quality assurance process been completed efficiently and as planned; contractual obligations restricting our choice of were rated positively, with strong adherence to where this was not the case, it was felt that Experian plc Governance Code principle 108 Audit, Risk and Internal Control

Audit Committee report continued

deviations from the plan were communicated focus on audit quality at the top of the firm and that there was appropriate pre-approval for and appropriate. It was additionally noted that a number of improvements to the audit practice non-audit services, which are provided only if any COVID-19 related changes were handled as a result. However, the report also observed permissible under relevant ethical standards. efficiently and effectively. No necessary that further increased consistency of high- The Committee concluded that the external improvements were noted with regard to the quality audits was required. In response to the auditor had maintained its independence external auditor's judgment and findings, KPMG subsequently updated the throughout the year. communication, particularly as to technical Committee on the investment being made in Non-audit services issues, estimates, discussing potential issues audit quality, talent retention, diversity, and the KPMG provides other services to Experian. and management letter content. ongoing monitoring that was in place. To ensure auditor objectivity and independence, Meeting attendance by the external auditor Technology and processes – KPMG employ a we have a policy relating to providing such – KPMG attend all scheduled Committee ‘hub’ approach in order to perform services. The policy includes financial limits meetings and, during the year, reported to the standardised testing for each local market. This above which any proposed non-audit services Committee on the components of the audit plan, approach includes the use of data analytics must be pre-approved, depending on the additional or forthcoming requirements or techniques, which supplies audit evidence over expenditure proposed. The Committee receives regulatory changes, audit findings and interim significant quantities of data, and this provides half-yearly reports providing details of audit findings. These reports, the private a perspective on audit quality to the Committee. non-audit assignments carried out by the sessions held with the Committee, and the level external auditor, together with the related fees. Independence is an important element of the of challenge applied by the external auditor to Under the policy, non-audit fees paid to KPMG external audit. To ensure auditor objectivity and management, are opportunities for KPMG to are capped at 30% of the fees for audit services, independence, the Committee reviews potential demonstrate and articulate (and for the except in exceptional circumstances. threats to independence and the associated Committee to assess and challenge, as Pre-approval by the Audit Committee or safeguards during the year. The safeguards that required) the quality of the audit work. Audit Committee Chairman is required in KPMG had in place during the year to maintain that situation. An analysis of fees paid to the FRC Audit Quality Inspection Report (AQR) – in independence included annual confirmation by external auditor for the year ended 31 March June 2020, the FRC published its AQR for KPMG, KPMG staff of compliance with ethics and 2021 is set out in note 13 to the Group financial which was focused on the key areas requiring independence policies and procedures. KPMG statements. action by KPMG to safeguard and enhance audit also had in place underlying safeguards to quality. This provided the Committee with an maintain independence by: instilling external perspective on the quality of audits by professional values; communications; KPMG, and the Committee noted the FRC’s international accountability; risk management, comments that there had been considerable and independent reviews. They also ensured

Provision of non-audit services

Background Reports required by or supplied to The appointment of the external auditor for The Audit Committee annually reviews the competent authorities/regulators any non-audit work up to US$50,000 must be policy on the provision of non-audit services supervising the audited entity, where the approved by the Global Financial Controller. and the recruitment of former auditor authority/regulator has either specified the The appointment of the external auditor for employees, and the latest review took place in auditor to provide the service or identified any non-audit work where the expected fees March 2021. The policy, which is set out below, to the entity that the auditor would be an are over US$50,000 and up to US$100,000 recognises the importance of the external appropriate choice for service provider requires the approval, in advance, of the Group auditor’s independence and objectivity. Audit and other services provided as Chief Financial Officer. Where the expected fees are over US$100,000, the approval of the Policy auditor of the entity, or as reporting Chairman of the Audit Committee is required The external auditor is prohibited from accountant, where the services are required in advance. providing any services other than those by law or regulation directly associated with the audit or required Reviews of interim financial information; Where cumulative annual fees exceed the by legislation. These are limited to: and providing verification of interim profits 30% annual limit, all expenditure must be approved by the Chairman of the Audit Reporting required by a competent Extended audit or assurance work where Committee (via the Global Financial authority or regulator under UK law or the work is integrated with the audit work Controller), up to 35%. Where cumulative regulation, for example: and is performed on the same principal terms and conditions annual fees exceed the 35% annual limit, –– Reporting to a regulator on client assets; all expenditure must be approved by the Audit Services which support the entity in –– In relation to entities regulated under the Committee. All expenditure is subject to a fulfilling an obligation required by law or UK Financial Services and Markets Act tender process, unless express permission is regulation, where the provision of such 2000 (FSMA), reports under s166 and provided by the Chairman of the Audit services is time critical and the subject s340 of FSMA; Committee, the Chief Financial Officer or the matter of the engagement is price sensitive –– Reporting to a regulator on regulatory Global Financial Controller based on the above Reporting on government grants financial statements; approval limits. Any expenditure below Reporting on covenant or loan agreements US$100,000 not subject to a tender will be –– Reporting on a Solvency and Financial which require independent verification notified to the Chairman of the Audit Condition Report under EU Solvency II Committee. Directive 2009 Additional assurance work on material included within the Annual Report Reporting on internal financial controls Services which have been the subject of an Continued opposite application to a competent authority. Code principle Experian plc Annual Report 2021 Audit, Risk and Internal Control 109

Commercial agreements where Experian fees carried out by the external auditor in worked on the audit of Experian plc or its provides services to the auditor must be addition to their normal work. subsidiaries. approved by the Global Financial Controller Following the year-end audit, neither Experian The KPMG Engagement Letter further and not exceed the lower of 5% of the local nor any of its subsidiary companies will prohibits Experian from soliciting the Experian entity’s total revenue and employ any audit partner or audit team employment of any audit team member for US$250,000, and all transactions should member in a position which could have a three months following completion of the be undertaken on an arm’s length basis. significant influence on the Group’s audit, without KPMG consent. Transactions in excess of this limit require accounting policies or the content of its approval of the Chairman of the Audit The Committee will receive an update if any financial statements until a cooling-off period Committee in advance. senior audit team members are recruited by has elapsed. The cooling-off period is two Experian, and an annual update in March The Committee will receive half-yearly reports years in respect of an audit partner, and one providing numbers of former auditor providing details of assignments and related year in respect of a director, where they have employees currently employed by Experian.

Risk management and internal control Governance

The Board is responsible for maintaining and we face. This process was in place for the the standing risk management update it monitoring sound risk management and financial year and up to the date of approval of receives. During the year, as well as internal control systems, and for determining this Annual Report. Full details of our risk management-identified emerging risks, the the nature and extent of the principal risks management and internal control systems Committee asked management to evaluate Experian is willing to take to achieve its and processes can be found in the Risk certain risks as potential emerging risks. strategic objectives. There is an ongoing management section of the Strategic report The specific processes underlying the elements process for identifying, evaluating and on page 73. The Audit Committee considers of our risk framework are set out below. managing the principal and emerging risks emerging risks with management as part of

Identify Identify and escalate new, emerging or changing risks, significant Consider external factors arising from our operating environment incidents, significant control gaps and risk acceptance and internal risks arising from the nature of our business, our controls and processes, and our management decisions

Assess Assess the potential impact of each strategic, operational and Conduct detailed performance reviews at a regional level financial risk on the achievement of our business objectives, and Report to Regional Risk Committees, the Security and Continuity the Group’s corresponding risk appetite Steering Committee, the Executive Risk Management Committee, Produce Board-level and Group-level finance reports, including and the Audit Committee on the status of principal and emerging financial summaries, results, forecasts and revenue trends, risks, the progress of strategic projects and acquisitions, and investor relations analysis and detailed business trading escalation of significant accepted risks summaries Global Internal Audit reports to the Audit Committee on assurance Follow formal review and approval procedures for major testing and Confidential Helpline investigation results transactions, capital expenditure and revenue expenditure Group Compliance reports to the Audit Committee on fraud Evaluate compliance with policies and standards that address management risk management, compliance, accounting, treasury Apply a risk scoring system, based on our assessment of the management, fraud, information security and business continuity probability of a risk materialising, and its impact if it does Monitor budgetary and performance reviews tied to KPIs and Require executive management confirmations of compliance with achievement of objectives our corporate governance processes and control environment

Respond Apply active risk remediation strategies, including internal Accept or remediate current risk and control environment controls, formal exception processes, insurance and specialised Determine corrective action if required treasury instruments Use formal review and approval procedures for significant accepted risks

Monitor Maintain comprehensive risk registers representing the current Use the Audit Committee to monitor the Group’s risk management risk and control environment, using a software solution to provide and internal control systems enhanced monitoring Review by the Audit Committee of the effectiveness of our systems Review of controls and follow-ups by management, second line of risk management and internal control functions such as Compliance, Global Internal Audit and third Receive an annual report on the controls over relevant risks parties Ongoing review of principal risks identified by the Group’s risk Use Global Internal Audit to independently assess the adequacy assessment processes and effectiveness of the system of internal controls Report on risk to the Audit Committee, addressing material and emerging risks, material litigation, information security, business continuity, and regulatory compliance Experian plc Governance Code principle 110 Audit, Risk and Internal Control

Audit Committee report continued

Risk management and internal control systems review

Risk management is essential in a global, innovation-driven business such as Experian. It Independent assessment helps to create long-term shareholder value and Global Internal Audit reports protects our business, people, assets, capital and Global Internal Audit Confidential Helpline reputation. It operates at all levels throughout reports Through a combination of the organisation, across regions, business External auditor’s report ongoing and annual reviews, activities and operational support functions. the Board is able to review Sustainable business independent Our approach to risk management encourages the effectiveness of the assurance report Group’s risk management clear decisions about which risks we take and and internal control systems how we manage them, based on an Review by relevant regulatory bodies (e.g. US understanding of their potential strategic, Consumer Financial Protection Bureau) commercial, financial, compliance, legal and Evaluation of external auditor reputational impact. As risk management and Evaluation of Global Internal Audit internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives, they can provide reasonable but not absolute assurance against Management assurance material financial misstatement or loss. Annual executive certification of compliance In line with the Code, the Audit Committee with UK FRC guidance and control adequacy monitors our risk management and internal Risk management reports, including material control systems, robustly assesses the principal litigation risks identified by our risk assessment processes Compliance reports (including those that would threaten our business model, future performance, solvency or liquidity), Information security reports and monitors actions taken to mitigate them. Impairment, going concern and viability reviews For certain joint arrangements, the Board relies Annual Report, full-year and half-yearly financial on the systems of internal control operating report review within Experian partners’ infrastructure and the Management representation letters obligations of partners’ boards, relating to the effectiveness of their own systems. The Code requires companies to review the effectiveness Board/Audit Committee approved of their risk management and internal control systems, at least annually. The Audit Committee Annual Global Internal Audit plan performs this review under delegated authority External auditor’s engagement letter from the Board. External auditor’s annual audit plan Following this year’s review, the Board Treasury policy considers that the information it received Tax policy enabled it to review the effectiveness of the Compliance policy Group’s system of internal control in accordance with the FRC’s ‘Guidance on Risk Management, Global Delegated Authorities Matrix, which Internal Control and Related Financial and defines internal approval procedures Business Reporting’ and confirm that the system has no significant failings or weaknesses. For more on our approach to risk management see pages 72 to 80.

Additional financial reporting objectives of the Policy and Standards are to: internal controls provide standards for accounting issues and to act as a reference document for both Experian We have detailed policies and procedures in employees and external auditors; allow for place to ensure the accuracy and reliability of preparation of consistent and well-defined our financial reporting and the preparation of information for financial reporting Group financial statements. This includes our requirements under IFRS; provide a set of comprehensive Global Accounting Policy and measures to be used for both quantitative and Standards, which contains the detailed qualitative assessments of Group performance; requirements of International Financial increase the efficiency of the reporting process; Reporting Standards (IFRS). The Group’s and provide a guide for educating Group Financial Reporting team owns the Global personnel in approved standardised finance Accounting Policy and Standards and we have and accounting procedures. rolled it out across the Group, obliging all Group companies to follow its requirements. The main Code principle Experian plc Annual Report 2021 Remuneration 111 Report on directors’ remuneration

doubled our carer’s leave to ten days and FY21 was undoubtedly an unprecedented provided enhanced sick pay for employees with year for our business, our employees, and the COVID-19, irrespective of their tenure. societies in which we operate. The emergence of the global COVID-19 pandemic, and the Like a lot of society, our employees had to subsequent national lockdowns in all our deal with personal and professional challenges major markets, created a drastically different for the whole of FY21. With both admiration and operating environment than the one that we sincere gratitude we witnessed the incredible George Rose had planned for. We had to adapt quickly to efforts shown by all our employees as they Chairman of the Remuneration the many unique and unforeseen challenges supported each other through the pandemic. As Committee that faced our business and our employees. a way of saying thank you for this exceptional effort, we will be making a special one-off I would therefore like to start by thanking all recognition award to all our employees below our 17,800 employees whose resilience and senior management, approximately 17,000 I am pleased to present, on behalf commitment enabled us to deliver another employees, for helping Experian to thrive during of the Remuneration Committee, the year of growth. I am proud of how the the pandemic. The initial award will be a share Report on directors’ remuneration, Company approached this year. From the very award of US$700 and we will match the award following a challenging year, but one of beginning of the pandemic we were clear that on a 2:1 basis (i.e. a further US$1,400) for any Governance resilient performance for the Company. our priority was to protect our people and our employee who retains their initial share award business. By doing this, we established a for a period of three years. platform from which to emerge stronger from the pandemic and help all our stakeholders Once again this year I had the opportunity Members and national governments along the way. to meet – albeit necessarily virtually – George Rose (Chairman) with our UK and Ireland Experian People Forum. Dr Ruba Borno Protecting our people These meetings are always an informative Alison Brittain engagement opportunity to discuss a variety Caroline Donahue Protecting our people, not just their mental of topics that are close to the hearts of our Luiz Fleury and physical well-being but their jobs too, has employees. I was very pleased to hear very Jonathan Howell* been one of our key priorities throughout the positive feedback on the actions that had been Deirdre Mahlan pandemic. taken to help support our employees through the Mike Rogers Driven by the backdrop of COVID-19, we took a pandemic. There was a sense that virtual working * From 1 May 2021 prudent decision to apply a global pay freeze gave a greater insight into everyone’s personal to all employees, including executive directors, circumstances, which has actually further for FY21 in order to enhance our ability to ‘humanised’ our leaders and enhanced the strong preserve the jobs of all our workforce. collaboration aspect of the Experian culture. Quick link It is pleasing to report that our prudence paid Protecting our business and respecting experianplc.com/ off, and that in FY21: about-us/ our investors We did not furlough any of our employees, corporate-governance/ Our strategy continues to be focused on board-committees/ or avail of any similar government support maximising our long-term growth potential. in any of the countries in which we operate. The emergence of the pandemic in March 2020 We did not reduce any employees’ salaries came as the previous financial year was closing or working hours out. Despite the uncertainty brought about by We have maintained our global level of COVID-19 our ambition remained unchanged. employment at c.17,800 throughout Therefore, we decided to push forward with COVID-19 a number of planned critical strategic For FY22 we will once again be operating our investments in FY21. Those investments in normal merit review process, for which all areas such as business portfolio and employees will be eligible. technology infrastructure are designed to further fuel the sustainability of the business to The vast majority of employees continue to meet our longer-term aspirations. We were work from home in a safe and efficient way, pleased to be in a position to pay, in the normal supported by a number of 'people first' way, both our FY20 second interim dividend in policies designed to help employees and their July 2020 and our FY21 first interim dividend in families to navigate the current environment. February 2021. Our share price, which has We reviewed and enhanced a number of our remained resilient over FY21, continues to people policies in FY21, to ensure that we reflect the positive investor sentiment in how could support our employees as they dealt our Board, management team and employees with the challenges, both personal and have responded to the challenges of delivering professional, of the pandemic. We expanded business performance and growth during the some of our existing well-being programmes pandemic. to include stress management, mindfulness and meditation as well as broader mental health support. We also enhanced some of our leave policies, for example in the UK&I we Experian plc Governance Code principle 112 Remuneration

Report on directors’ remuneration continued

Supporting governments and society e xecutive directors did not receive any salary our employees in India with additional financial As a Company we believe that we should help increases; hardship support, enabling them to access and contribute to the societies in which we no adjustments would be made to funds quickly for medical expenses, temporary work, and while this social responsibility is outstanding long-term incentive (LTI) awards. housing and any other urgent needs. central to many of our annual activities, it was All outstanding LTI awards will be assessed brought into focus even more in FY21. against the already disclosed performance Experian’s executive conditions, with no adjustments to account remuneration policy We mobilised our business quickly to provide for the impact of COVID-19; and governments and non-profit organisations with Since the 2017 Remuneration Policy (Policy) our tools and resources to help deal with the 2020 LTI performance targets were set to vote, we have engaged proactively with our crisis. We are proud to say that this enabled balance the known impact of the pandemic shareholders. Based on the valuable feedback national governments to direct financial at the time of grant with our longer-term received, we have made a series of changes support to the businesses and individuals who unchanged growth ambitions. and additional refinements over the last four years to further improve our executive needed it most. Additionally, in recognition of the prevailing remuneration structure. It was pleasing to see uncertainty and to acknowledge the difficult On the subject of government support, I want to the strong level of shareholder support we economic circumstances created by COVID-19 confirm that Experian did not look to secure any received, for both our Policy and Remuneration on the wider economy, our executive directors government support, in any of the countries in Report, at the 2020 AGM. which we operate. We did not avail of any voluntarily waived 25% of their contractual furloughing programmes or any other national base salary for six months in FY21. The As we disclosed in last year's Report on support programmes. Committee supported this decision and Directors' Remuneration (RDR), the Committee determined it would be appropriate to donate considered it was appropriate to delay setting Executive directors an amount equal to the value of salary waived and disclosing 2020 LTI plan targets until later by the executive directors to the Experian in 2020, when there was more clarity on the Our Remuneration Policy (Policy) is built on the Hardship Funds across the Group. These business impact of the global pandemic. principles that (i) executives are only rewarded Employee Hardship Funds are used to provide The decision to delay setting 2020 LTI targets for delivering strong financial results and (ii) financial support to Experian employees in was driven by the Committee’s strong executive pay is aligned with stakeholder cases of extreme difficulty, such as when their preference to set meaningful targets that were experience. True to these principles, the homes were damaged or destroyed by flooding stretching but attainable even in the prevailing Committee determined that for FY21: or wildfires. Most recently, the Experian uncertain economic environment, rather than Hardship funds have been utilised to provide

Stakeholder experience in FY21

No furloughing of staff Employees Global employment maintained at 17,800 Pay freeze but no reductions to employee salary in FY21 No forced annual leave or reduced working hours Normal bonus entitlement for FY20 and FY21 Enhanced flexible working from home, to better support personal circumstances 97% employees globally working from home in FY21 3.2% global pay increase budget for FY22 US$700 Thank You Share Award with a further 2-for-1 matching opportunity

Investors Dividends of USc32.5 and USc14.5per share paid in July 2020 and February 2021, respectively Share price stability, 11% increase1 in FY21 No shareholder capital raising

Executives Pay freeze applied for FY21 Executive directors voluntarily waived 25% of their base salaries for six months in FY21 No adjustments to in-flight TIL awards

Experian Group No financial government support taken in any of our operating regions Protected strategic investments and executed all planned acquisitions to support future growth Experian is proud to have been in a position to provide pro bono support to national governments to enable COVID-19 relief to be directed to those most in need

1 Share price is the 12-month average to 1 April 2021 compared to 12-month average to 1 April 2020. Code principle Experian plc Annual Report 2021 Remuneration 113

relying on the Committee’s discretion to at the November 2020 meeting, and shortly We continue to value the open and constructive determine how much, if any, of the 2020 LTI afterwards we released a RNS announcement nature of our shareholder engagement over awards would vest. We felt that this was a more to confirm the full performance range that recent years. It has been encouraging to receive transparent approach and we were pleased to would apply to the 2020 LTI awards. feedback about the frequency and proactive receive investors' support for taking the spirit in which we engage. For full transparency At that time, we also issued a letter, to our additional time to set LTI targets that would be we have provided the additional context we major shareholders and the proxy advisory more motivational from the outset. shared with investors in November 2020, and bodies, that provided them with some of the also some details on the key questions from The Committee first discussed a set of additional context outlined above. We were shareholder discussions since then. preliminary 2020 LTI targets at an ad-hoc pleased with both the engagement and the meeting in September 2020. After further support we received from investors in response discussion, the finalised targets were agreed to this letter.

Q&A We remain committed to our principle that

Q: Can you provide some insight on any Q: Has Experian considered incorporating Governance executives are only rewarded for delivering additional factors that shaped the Environmental, Social and Governance strong financial results and outturns that are Committee’s thinking in setting FY21 (ESG) metrics into the executive in our shareholders' best interests. We believe incentive plan targets? incentive plans? that the 2020 LTI performance range, which was set on a one-off basis, reflects this From the beginning of the pandemic, the approach. In recent months a clear ‘direction of travel’ Committee’s strong preference was to allow It is also worth noting that a significant has emerged, with more investors raising this the Remuneration Policy to apply unadjusted, number of the plan participants are US-based. particular query. To date, we have felt that we and not to apply discretion to any outstanding Therefore the ability to set credible, have always taken our ESG agenda seriously LTI awards. motivational targets plays an important role in and with appropriate focus such that there has not been a perceived necessity to include When 2020 LTI plan targets were set the the retention of key talent in the very dynamic an ESG metric in our incentive framework. In vesting levels of the outstanding (2018 and US external market of data information and recent years, we have consulted quite 2019) LTI awards were – understandably – not technology companies. extensively on our performance metrics and anticipated to hit the projected pre-COVID-19 the feedback from those engagements has levels. While the Committee were not Q: Hav e you made any redundancies as a shaped our current framework. As with any intending to apply any discretion to those result of COVID-19? metric to be considered for inclusion in our outstanding awards – in that their formulaic incentive framework, we look for a strong vesting levels would simply prevail – it was strategic alignment and something that felt inappropriate not to reflect the known No. In line with our normal practice we made resonates with the Company's purpose. impact of the global pandemic when setting changes to our business portfolio during the targets for the awards granted in 2020. year and continued with organisation and We will begin to discuss this topic in more technology transformation activities planned or depth in the coming year and consider how Therefore, the agreed 2020 LTI targets reflect announced in advance of FY21, and the onset of the important aspects of ESG should shape the uncertainty and challenges of FY21 but, COVID-19. our remuneration arrangements. importantly, also our unchanged ambitions for the remainder of the three-year performance Overall we maintained the same total number of Q: What is Experian’s plan for aligning period. The strength of our conviction is employees for this financial year as the previous UK-based executive director pension demonstrated by the decision to retain our one. As part of the implementation of any provisions with the majority of the UK existing performance target ranges for three transformational activities, and as is our normal workforce? of the four metrics (Operating Cash Flow, practice, we sought opportunities to redeploy Return on Capital Employed and Total employees wherever possible, and where this Shareholder Return (TSR)) for the 2020 LTI wasn’t feasible employees were provided with In line with our 2020 Remuneration Policy, plan awards. additional support, including enhanced any new UK-based executive director severance terms, adjustment periods In order to set a motivational but stretching appointments would receive a cash pension recognising local pandemic-related restrictions allowance or pension contribution that is target range for the Benchmark Earnings and outplacement resources. Per Share (EPS) metric, we blended the aligned with the majority of the wider UK anticipated impact on earnings in FY21 employee workforce (currently an employer with a return to previous target ranges for contribution of 10% of base salary). the remaining two years of the three-year From 1 January 2023, the cash pension performance period. This resulted in an EPS allowance of our incumbent UK-based performance range of 3% – 7% per year, over executive directors (currently 20% of base the three-year performance period, which is salary) will be reduced to a cash pension lower than our more recent performance allowance of 10% of base salary to align to the ranges, but is still very stretching over the employer pension contribution of the majority three-year period of the awards. of the wider UK employee workforce. Experian plc Governance Code principle 114 Remuneration

Report on directors’ remuneration continued

FY21 performance The Committee’s broader review of expenses, ensured that this top-line growth performance is always important to ensure that flowed through to the Benchmark EBIT outturn FY21 at a glance the financial outturns are a fair and true for the year which, for annual bonus purposes, reflection of the Group’s overall performance grew by 2.7%. Annual performance over the period. Having considered a number of Following a review of the Group’s financial 7% revenue growth* additional non-financial measures and the performance and consideration of all business stakeholder experience at its May 2021 3% Benchmark EBIT growth* priorities, including those non-financial in meeting, the Committee was satisfied that the 1 nature, and having reflected on the Stable 17,800 headcount Company’s financial performance was aligned assumptions underpinning the performance with its holistic assessment of performance Three-year performance targets, the executive directors proposed an over the period. 22% cumulative PBT per share growth adjustment to the performance range. This 61% share price growth2 How is our performance reflected in executive resulted in a degree of downward discretion pay? against the formulaic outturn. US$4.2bn cumulative benchmark Salary: the Committee applied a pay freeze to operating cash flow over three years As a result of the combined revenue executive director salaries for FY21. However, in performance and Benchmark EBIT growth the 7% average increase per annum in recognition of the prevailing uncertainty and to overall bonus for FY21 will be paid out at 91.3% adjusted Benchmark EPS acknowledge the difficult economic of maximum for each of the executive directors. *At constant currency rates circumstances created by COVID-19 in the wider economy, each of the executive directors Actual 1 Headcount as at 31 March 2021 (31 March 2020: 17,800). voluntarily waived 25% of their salary for six 91.3% 2 Three-month average to 31 March 2021 of £25.58 months in FY21. The Company determined it compared to the three-month average to 31 March 2018 of £15.90. would be appropriate to donate a value equal to the salary waived by the executive directors to Threshold Target Maximum I am pleased to report that FY21 was a year of the Experian Employee Hardship Funds. 25% 50% 100% resilient and strong performance for Experian. Annual Bonus: the Committee always seeks to The emergence of COVID-19 at the beginning of set stretching but attainable annual bonus The Committee was satisfied that the revised the financial year had a significant impact on performance targets that reflect our strong level of bonus payout aligned fairly and our global operating environment, as national pay-for-performance philosophy. Incentivising accurately to the year’s achievements. lockdowns were introduced in all our major the delivery of both EBIT and Revenue growth Therefore, no further discretion (upward or markets. Despite the unprecedented challenges remained core to our ambitions, however being downward) was deemed necessary. Full details of FY21, the Group delivered growth across all able to maintain the 'attainable', and hence of the annual bonus outcomes are set out in the our key financial metrics. Continuing to achieve motivational, aspect of the targets was more Annual report on directors’ remuneration. growth in such economic circumstances challenging given the level of prevailing Long-term Incentives: The Performance Share reflects the robustness of our business strategy uncertainty. Admittedly, those ambitions were Plan (PSP) and Co-investment Plan (CIP) and importantly the ability to execute that rightly tempered by the need to protect jobs and awards granted in 2018 will vest on 7 June strategy. maintain strategic investments, both of which 2021. The resilient financial performance in In FY21, the Group achieved 7% total revenue were critical objectives for the Board as part of FY21 follows the strong performance of both growth, as well as strong levels of growth in navigating this pandemic year. FY19 and FY20. Over the last three years, Benchmark PBT per share 4% and Benchmark In FY21 both North America and Latin America Experian has achieved: EPS 4%. Furthermore, these results are once again delivered outstanding, high 7% average increase per annum in adjusted supported by a strong operating cash flow. It single-digit organic revenue growth, which built Benchmark EPS was undoubtedly a very different year for many upon the resilient revenue performance in our US$4.2bn cumulative Benchmark operating businesses, and we took very conscious steps other regions to deliver Group revenue cash flow over three years to ensure that we protected our people and our performance growth, for annual bonus key strategic investments. With that backdrop, purposes of 5.8% (further information on page 22% cumulative Benchmark PBT growth still being able to deliver positive Benchmark 120). This strong revenue performance, 61% share price growth over three years EBIT growth of 3% for FY21 is a reflection of combined with returns on strategic investments both the resilience of our business and the and prudent financial management of These strong growth figures underpin the commitment of our people. Our share price demonstrated a similar degree of resilience, as it remained stable over FY21. Experian 3-year TSR relative to FTSE 100 Index Experian FTSE 100 Index Whilst the delivery of financial results is undoubtedly very important, the Committee £200 actively undertakes a holistic approach to the assessment of the Company’s performance by £180 reviewing a broad range of metrics. These £160 include – but not exclusively – employee engagement, diversity and inclusion, impact on £140 the environment and consumer satisfaction. For £120 FY21, there was even greater emphasis on the stakeholder experience of our employees and £100 our investors during this pandemic year. £80 March September March September March September March 2018 2018 2019 2019 2020 2020 2021 Code principle Experian plc Annual Report 2021 Remuneration 115

overall vesting levels of the PSP and of the CIP, The Committee were also provided with an People and culture which were 80% and 87% respectively. Whilst update on a number of the policy Creating an agile, innovative, high-performance the impact of the pandemic in the final year of enhancements and additional programmes culture has been, and continues to be, a huge the performance period undoubtedly affected introduced to support employees' well-being focus for Experian as we look to maintain and the potential performance outcomes that may over the course of the COVID-19 pandemic. further develop an environment that enables have otherwise been achieved in FY21, no Understandably some of these policies varied our employees to thrive and be successful. adjustments were made in assessing the by jurisdiction, however – as an example – performance outturns for the 2018 LTI plans. some of the policies introduced to support our The Experian Way, our unique and consistent UK employees during the pandemic include: way of working globally, informs how our As with the annual bonus plan, the Committee people act and behave, thus shaping our considered the LTI vesting levels in the context UK COVID-19 steps culture. Experian’s culture is a key enabler of of the current economic environment, and our success and this was clear to see in FY21. determined the formulaic vesting levels to be 99% UK employees working from home The resilient performance delivered this year is an appropriate reflection of the strong business US$700 Thank You Share Award with a a true testament to the strong collaborative growth achieved over the three-year further 2-for-1 matching opportunity culture at Experian, and the vibrancy of The performance period. Normal bonus entitlement for FY20 and Experian Way. In line with our remuneration principles, a FY21 The vibrancy plays out in many ways, one of Governance substantial portion of the CEO’s single figure Extended carer's leave (doubled from five which is our focus on innovation, which fuels value is determined by long-term performance. days to ten days) the exploration of new opportunities and rapidly For FY21 62% of the CEO’s single figure value is Full sick pay for all employees with pivots our business to meet our clients' evolving driven by the vesting levels of the LTI plans. COVID-19, regardless of tenure needs. The collegiate nature of The Experian Importantly, despite the prevailing economic Way generated via our connected global uncertainty 18% of the total FY21 single figure Flu vaccination vouchers available to all network enabled us to deliver better results and value for the executive directors is directly employees leverage solutions across the Group – even attributable to share price growth and Enhanced access to Bupa medical care though globally 97% of our employees dividends. All shareholders, including from home understandably worked from home for the full shareholder employees, will also have Virtual well-being and mindfulness financial year. benefitted from this same share price growth sessions and dividend return over the same three-year The Committee takes a keen interest in the period. health of the Company’s culture and is regularly As I mentioned previously, I had the opportunity updated on the KPIs used to track and monitor to further supplement the Committee’s Pay in the wider workforce Experian’s culture, including its People Survey understanding of the pay and related policies results, Employee Engagement Score and our Employee engagement for the broader workforce by attending our Net Promoter Score. As I mentioned in my 2020 statement, we have virtual UK and Ireland Experian People Forum. I For FY21, driven in part by the uncertainty of always felt well informed about the pay and was very pleased that the virtual nature of the the global pandemic we replaced the annual related policy arrangements for the broader Forum this year didn’t hinder the level of People Survey with monthly, and then quarterly, employee population at Experian. As the engagement from employees and I found the pulse surveys. The ability to quickly identify and Committee had existing processes in place to two-way nature of the discussions to be very respond to some of the new and emerging gain an extensive understanding of employee insightful. pay, prior to the introduction of the 2018 UK challenges facing our employees proved Corporate Governance Code (the Code) In the course of my discussions with the Forum invaluable in the development and provision of requirements, no single approach it was clear that employees appreciated the appropriate support for all our workforce. open and honest communications received recommended in the Code was considered We appreciate that measuring culture is from senior leaders over the year. The feedback appropriate for our business. We have therefore difficult but we have disclosed on the following was that this transparency provided further adopted a combination of the suggested page some quantitative culture-related data comfort to employees that Experian would methods to comply with the Code’s that we use to inform our own assessment on continue to protect both their jobs and their requirements. our culture, which can also help inform our well-being, over the course of the pandemic. It investors and other stakeholders. Each year, as part of the Committee’s standing was equally clear that employees continue to agenda, we are provided with an extensive value our current reward offering, and that the paper setting out details of all-employee pay additional benefits, such as critical illness cover and workforce policies across Experian. The and access to personalised financial well-being discussions on this topic have enabled us to advice, which were introduced on the back of proactively incorporate wider employee pay as the UK Total Rewards Optimisation project were important context for framing executive pay very well received. considerations. This year, at the Committee’s request, we reviewed an additional paper providing greater insights into the remuneration and benefit arrangements, including gender pay positioning, in our major regions. Experian plc Governance Code principle 116 Remuneration

Report on directors’ remuneration continued

Experian attrition Experian employee composition Experian diversity headcount by employee type 2021 2020 2019 2021 2020 2019 Voluntary turnover 10.1% 11.6% 12.3% Senior leaders - women 32% 30% 31% Involuntary turnover 6.3% 7.2% 8.5% 2021 2020 2019 Total workforce - women 44% 44% 44% Total turnover 16.4% 18.8% 20.8% Full-time 93% 94% 93% Part-time 3% 2% 3% We strongly believe that diversity throughout Partly as a result of our strong, collaborative Temporary employees 4% 4% 4% the Group is a driver of business success and are working hard to reflect in our workforce working culture, which came to the fore in Contractors 0% 0% 0% this pandemic year, employee turnover was the diversity of our customers, clients and the comparatively low across the regions in Calculations based on the total number of permanent societies in which we operate. In the coming employees, fixed-term employees, contingent workers year we will be undertaking our first global which we operate. Our 2021 involuntary and independent contractors in FY21. turnover was at its lowest level in recent employee census. This census is the first, The vast majority of our workforce is years reflecting our focus on protecting jobs very important, step to enable us to better employed on a full-time basis by the throughout the pandemic. As disclosed above, understand and develop our diversity. One of Company, which fuels and amplifies our we have not made any redundancies as a our priorities is to nurture our talent pipeline collaborative culture that employees continue result of COVID-19. The involuntary turnover and while we’re making strides in the right to give very positive feedback on. Our for 2021 is driven by a combination of an direction, we know we need to do more to employees receive a comprehensive benefits employee's performance or cultural fit not increase the level of representation of women package, tailored to the region in which the aligning with Experian’s expectations at senior levels. We are working very individual is employed. We augment our together with a small proportion of agreed proactively to address this, including setting a permanent employees with a small number transformational activities being actioned target of women representing 40% of our of temporary employees to enable us to later than originally planned due to the senior leaders by 2024. For detailed respond quickly to specific client needs or emergence of the global pandemic. information on diversity at Experian please broader business requirements. see page 49.

Looking forward As I have said previously, we will continue to As we begin to emerge from an unprecedented listen to and act on feedback from our year, we do so with a lot of positive momentum. shareholders, including how the important Whilst the impact of the global pandemic is not aspects of ESG should shape the metrics yet behind us, we have a greater degree of included in our remuneration approach. The certainty in the economic outlook compared inclusion of any metrics in our incentive with this time last year. The resilience, shown framework is driven by their alignment to our by both our business and our employees in strategic business objectives and our purpose FY21, stands us in great stead for future years. of creating a better tomorrow for our Our business strategy and our ambition to customers, our clients, our employees and our continue to deliver future growth remains shareholders. As always, we will engage with unchanged. and seek feedback from our shareholders and the proxy advisory bodies as we consider any At the onset of the pandemic we made the potential changes. decision to stay the course and did not make any changes to our Remuneration Policy or the In closing, I hope that I have provided some metrics we use to assess performance. As I helpful insight and broader context on mentioned in last year's Report on directors’ Experian's FY21 performance, that enables remuneration, we believed then and we shareholders to support our Annual report on continue to believe now that this Policy is the directors’ remuneration at the 2021 AGM. best fit for our business and is a key contributor to the achievement of our strong financial results. In FY21, despite 97% of our global workforce working remotely, our employees maintained their productivity, creativity and collaboration to deliver a strong resilient financial performance. It is encouraging to hear positive employee feedback on the steps taken to support our workforce through the pandemic. I look forward to seeing how the experiences and learnings from this year will enable us to emerge strongly and take greater advantage of the return to a more normal operating environment. Code principle Experian plc Annual Report 2021 Remuneration 117 Annual report on directors’ remuneration

Our executive remuneration at a glance

Performance snapshot 7% 3% USc103.1 15% 83% Revenue performance* Benchmark EBIT growth* Benchmark EPS Return on capital employed Employee well-being**

Performance measure Incentive plan Outturn Achievement (% of max) Benchmark EBIT growth* Annual bonus 2.7%1 90% Revenue performance growth Annual bonus 5.8%1 97% Three-year Benchmark PBT per share growth* CIP/PSP 7.4% 73% Three-year cumulative Benchmark operating cash flow* CIP US$4.2bn 100% Three-year TSR relative to FTSE 100 Index PSP 65% 100% Governance

1 For annual bonus purposes, see further information on page 120. * At constant exchange rates. ** Positive employee response to a global people survey question on the level of support provided by Experian during the pandemic. As a result of the performance shown above, the 2018 PSP vested at 80%, and the 2018 CIP vested at 87%.

Executive director single figure of pay Incentive awards timelines

’000 0 2,000 4,000 6,000 8,000 10,000 Grant Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Brian Cassin £7.6m Annual bonus Lloyd Pitchford £4.7m CIP Kerry Williams US$8.0m PSP Fixed elements of pay: Variable elements of pay: Base salary Annual bonus Performance period Pension and benefits Share-based incentives: value at grant Holding period Share-based incentives: value attributable to share price growth and dividend equivalent payments

Share ownership Brian Cassin Lloyd Pitchford Kerry Williams Actual holding 13.5 x salary Actual holding 11.6 x salary Actual holding 4.9 x salary Guideline Additional holding 3 10.5 2 9.69.6 2 2.9

As at 31 March 2021 and calculated as outlined on page 127.

Executive director remuneration arrangements for FY21 Our executive pay framework

No salary increases awarded to executive directors for FY21. Revenue growth is a Pension contributions for new UK executive director appointments key metric for us and will provide a quality aligned with workforce immediately and incumbent executive Annual 80% 20% Benchmark Revenue of earnings balance directors will be aligned by the end of 2022. bonus EBIT to the important Annual bonus based on Benchmark EBIT (80%) and revenue profit focus of performance (20%). The opportunity is 200% of base salary. Benchmark EBIT. Half of any payout must be deferred into the CIP for three years. The CIP is designed CIP awards will be based on cumulative Benchmark operating 50% to incentivise cash cash flow (50%) and adjusted Benchmark EPS (50%). The 50% discipline while the CIP Adjusted Cumulative maximum award remains a 2:1 match. Benchmark Benchmark PSP is designed EPS operating to incentivise PSP awards will be based on TSR (25%), ROCE (25%) and adjusted cash flow shareholder returns. Benchmark EPS (50%) performance. The opportunity of 200% of base salary is unchanged. However, growth CIP and PSP awards will be subject to an additional two-year 25% is the single most holding period. 50% ROCE important aspect PSP Adjusted of our business All incentive awards are subject to malus and clawback provisions. Benchmark strategy and EPS Existing in-employment shareholding guidelines will apply for two 25% therefore adjusted TSR Benchmark EPS runs years post-employment. across both plans. Experian plc Governance Code principle 118 Remuneration

Annual report on directors’ remuneration continued

This Annual report on directors’ remuneration will be put to shareholders for an advisory vote at the AGM on 21 July 2021. The Remuneration Committee has prepared it on behalf of the Board in line with the UK Companies Act 2006, Schedule 8 to the UK Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended) and the Listing Rules of the UK Financial Conduct Authority. All of the sections which have been audited by the Company’s external auditor, KPMG, have been noted.

What did we pay our executive directors in the year? (audited) The table below shows the single total figure of remuneration for the executive directors, for the years ended 31 March 2021 and 31 March 2020. Further explanatory information is set out below the table. Brian Cassin Lloyd Pitchford Kerry Williams 2021 2020 2021 2020 2021 2020 £’000 £’000 £’000 £’000 US$’000 US$’000 Fixed pay Gross salary1,2 973 968 600 597 1,028 1,026 Salary waived 1,2 (122) – (75) – (128) – Post-waiver salary 851 968 525 597 900 1,026

Post-waiver salary 851 968 525 597 900 1,026 Benefits 24 24 23 23 42 41 Pension 194 194 120 119 10 11 Total fixed pay 1,069 1,186 668 739 952 1,078

Performance-related pay Annual bonus3 1,776 1,549 1,096 956 1,872 1,632 Share-based incentives4 Value delivered through performance5 3,351 4,545 2,067 2,803 3,638 4,709 Value delivered through share price growth and dividends6 1,364 3,556 841 2,192 1,467 3,691 Total variable pay 6,491 9,650 4,004 5,951 6,977 10,032

Total single figure of remuneration 7,560 10,836 4,672 6,690 7,929 11,110

1 In FY21 our executive directors voluntarily waived 25% of their contractual base salary for six months. Gross salary is the base salary the executives would have received if they had not waived entitlement to a portion of their salary in FY21. The amounts of salary waived by Brian Cassin, Lloyd Pitchford and Kerry Williams in FY21 were £121,562, £75,000, and US$128,125 respectively. 2 For Kerry Williams, the salary also reflects the timing of US payroll payments. 3 The FY21 annual bonus opportunity is calculated as a percentage of the executive director’s contractual annual base salary. Brian Cassin, Lloyd Pitchford and Kerry Williams’ FY21 annual bonus entitlements were calculated on their contractual base salary amounts for the year of £972,500, £600,000 and US$1,025,000 respectively. 4 None of the executive directors exercised share options in the years ended 31 March 2021 or 31 March 2020. 5 Value delivered through performance is calculated as the number of vested performance shares multiplied by the share price on the date of grant. 6 For FY21, the value delivered through share price growth and dividends is calculated as (i) the difference between the average share price in the last three months of the financial year and the share price on the date of grant multiplied by the number of vested performance shares, plus (ii) dividend equivalent payments for the number of vested performance shares. For 2020, this is calculated based on (i) the difference between the share price on date of vest and the share price on the date of grant multiplied by the number of vested performance shares, plus (ii) dividend equivalent payments for the number of vested performance shares.

How has the single figure been calculated? (audited) Salary Salary increases typically take effect from 1 June. However due to the economic uncertainty with the emergence of the global pandemic, the Committee determined it would be prudent to apply a pay freeze for executive directors in FY21. That same prudence meant that a pay freeze was applied to all employees across the Group and the financial benefit of that prudence enabled us to protect our employees and provide important support to them during this challenging year. In FY21, it is important to note that we did not apply any salary reductions to any of our employees. We did not furlough any employees, nor did we reduce anyone's working hours, or force any taking of annual leave. In recognition of the prevailing economic uncertainty and to acknowledge the difficult operating circumstances created by COVID-19, our executive directors voluntarily waived 25% of their contractual base salary for six months in FY21. The single figure represents the salary we paid to executive directors during the year, and as a result of the voluntary salary waivers their FY21 salary levels were lower than for FY20, as outlined below. 1 July – 31 December FY21 1 June 2020 2020 salary waiver post-waiver salary 1 June 2019 % ‘000 ‘000 ‘000 ‘000 increase Brian Cassin £973 £122 £851 £973 0% Lloyd Pitchford £600 £75 £525 £600 0% Kerry Williams US$1,028 US$128 US$900 US$1,025 0% Code principle Experian plc Annual Report 2021 Remuneration 119

The value of salary voluntarily waived by Brian Cassin, Lloyd Pitchford and Kerry Williams was £121,562, £75,000, and US$128,125 respectively. It was decided that an amount equivalent to the value of salary waived by the executive directors should be donated to the Experian Employee Hardship Funds. These Funds are registered charitable organisations that support Experian employees globally by providing, for example, financial assistance to those employees whose homes were damaged or destroyed by flooding or wildfires. Benefits and pension Taxable benefits include life insurance, private healthcare and a company car, or car allowance. Brian Cassin and Lloyd Pitchford are eligible to participate in a defined contribution pension plan but elected not to do so during the year ended 31 March 2021. In 2021, Brian Cassin received a cash supplement of £194,500 (2020: £193,667), and Lloyd Pitchford received a cash supplement of £120,000 (2020: £119,500), in lieu of their pension contributions. Kerry Williams participates in a defined contribution plan (401k). The company contribution to this during the year was US$9,644 (2020: US$11,192). No executive director has a prospective right to a defined benefit pension.

Annual bonus

Overview Governance All Experian employees participate in an annual bonus plan. We have one annual bonus plan in operation across Experian and the majority of our workforce participate in this plan. The remainder of employees participate in a sales commission plan. How the annual bonus plan works varies slightly depending on region and grade. For the vast majority of employees annual bonus awards are based on the performance of their particular business line or region. Executive directors are required to defer half of any bonus earned for three years through the CIP, although they may choose to defer more. This year, as in previous years, all three executive directors chose to voluntarily defer their full bonus payments into the CIP. Our annual bonus plan is based upon two performance metrics, which are Benchmark EBIT growth (80% weighting) and revenue performance (20% weighting). Benchmark EBIT is an important earnings metric and focuses on items directly within management’s control. To balance the important profit focus of Benchmark EBIT, revenue performance growth was added to the bonus plan in FY20 to provide an important quality of earnings element. How do we set the bonus targets? Performance-related pay is a key component of our reward structure for all employees and, as such, setting stretching targets is a critical focus area for the Committee. Every year we undertake a rigorous exercise to ensure that our targets are sufficiently stretching, taking into consideration the external marketplace and our own performance aspirations. The Committee is able to take a holistic approach to target setting as all our non-executive directors sit on the Remuneration Committee, as well as on all of our other principal Board Committees. This ensures Committee members are fully apprised of the wider business context and the Group’s business prospects over the coming years. As with many FTSE companies, our usual operating rhythm was significantly impacted by the onset of the global COVID-19 pandemic. When the Remuneration Committee considered the potential annual bonus targets for FY21, the coronavirus outbreak was in its early stages but dominating the landscape. It was incredibly difficult to predict the extent or duration of the pandemic and therefore the setting of the annual bonus targets was done in the hope that clarity on the impact of the pandemic on the global economy would quickly emerge. However, the scale of the impact of COVID-19 was not quickly apparent so the annual bonus targets were set with a backdrop of significant uncertainty. The Committee stuck to its principle of setting stretching but attainable performance targets that reflect our strong pay-for-performance philosophy. The challenge was to preserve the required motivational aspect of the targets in an unpredictable economic environment. It appeared to be very unlikely that we could – with credibility – set targets that took no account of the economic conditions and also give us the ability to deliver on the critical objectives of protecting jobs, supporting employees and maintaining strategic investments during the pandemic. The outlook was very uncertain as national lockdowns continued and vaccine development was in its infancy, but we made no changes to the annual bonus performance metrics in order to maintain our strategic focus on both revenue performance and EBIT growth. The targets reflected our philosophy of not rewarding negative growth – even during a global pandemic – and continuing to incentivise positive growth. Experian plc Governance Code principle 120 Remuneration

Annual report on directors’ remuneration continued

Outlined below are some of the additional factors the Committee considered in setting specific FY21 annual bonus targets: Revenue performance (20%): As a growth company, revenue is a key indicator of business vitality and was added to our annual bonus plan in FY20. This additional metric added a quality of earnings aspect to the important focus of EBIT growth. The culture of Experian has a strong performance-driven ethic and even in a contracting market we continued to focus on sustaining top-line growth, which was reflected in the performance target range for FY21. A maximum payout on the revenue element of the bonus would be earned for 6% revenue performance and target was set at 3% revenue performance growth. Benchmark EBIT (80%) The key FY21 priorities were preserving employment, supporting employees and protecting investment in key strategic and transformation areas that would enable us to emerge stronger from the pandemic and deliver continued future growth. We took a number of actions in FY21 to protect the business and support our employees, clients and other stakeholders through the pandemic. These actions included discretionary spend reductions, hiring and merit freeze and reprioritisation of capital expenditure and inorganic investments. The Committee fully supported the decision to prioritise employees and maintain strategic investment in FY21. The Committee recognised this would inevitably restrict our ability to fully optimise EBIT and this was reflected in the agreed targets. Target was set at maintaining flat full-year EBIT, over the course of the pandemic, increasing to maximum payout for 3% EBIT growth over the year. Given our commitment to growth, and our stance that no bonus should be paid for negative growth, the Committee agreed there was no threshold for FY21 EBIT. Annual bonus outcome Revenue performance is calculated as the Group total revenue growth after the removal of intra-Group sales, and Benchmark EBIT is based on ongoing activities. Performance is measured on a constant currency basis to strip out the effects of exchange rate fluctuations, which are outside of management’s control. The Committee also exclude the impact of any material acquisitions or disposals made in the year, to ensure both metrics are measured consistently, which is in line with our approach to long-term incentive plan measures. Whilst the headline numbers of revenue performance and Benchmark EBIT growth for FY21 were 7% and 3% respectively, the level of qualifying growth included for the purpose of calculating the annual bonus outturns was 5.8% and 2.7%, as shown in the table below. The table below shows our growth in Benchmark EBIT and revenue performance for bonus purposes relative to the FY21 agreed targets. % growth % growth % growth required for required for required for threshold target maximum FY21 actual Annual bonus Metric Weighting payout payout payout growth achievement Benchmark EBIT growth 80% 0% 1.5% 3% 2.7% 144% Revenue performance growth 20% 0% 3% 6% 5.8% 39% Total annual bonus achievement as % target 183%

Before approving the annual bonus outcomes, the Committee discussed whether or not the proposed payout was appropriate in the context of both the current external environment and the Group’s wider business performance during the year. The original performance range for Benchmark EBIT growth was 0% – 3% between target and maximum payout. This performance range was set to be stretching at a time of great uncertainty regarding the impact of the global COVID-19 pandemic recognising that, given the challenging environment for target setting, it may be appropriate to apply a degree of discretion to better reflect a holistic view of performance over the year. As part of that holistic review of performance following the end of the year, it was agreed that the 0% – 3% performance parameters for Benchmark EBIT growth was appropriate for the challenging FY21 operating environment. However, reflecting on the assumptions underlying the setting of the performance target range in the context of actual performance in the financial year, it was agreed that it would be more appropriate to assess the outcome of this element against a 0% – 3% range from threshold to maximum (as shown in the table above), rather than from target to maximum. This meant that Benchmark EBIT growth of 0% would result in 0% payout under this element, with growth of 1.5% required to earn a target payout (50% of maximum). This discretionary adjustment to the effective performance range resulted in a reduction to the FY21 annual bonus outcome. As set out earlier in the Report, the Group’s performance in the year was extremely resilient in the context of the challenging external economic environment. The Committee agreed that the Company’s financial performance was aligned with their holistic assessment of performance over the period, which included non-financial factors such as our Net Promoter Score, employee experience, employee engagement results, direct employee feedback to the Committee Chairman at the People Forum, and the broader shareholder experience over the financial year. The Committee was also satisfied that it did not need to exercise any further discretion, and that the reduced level of bonus payout was appropriate for the performance delivered. The resulting annual bonus outcomes for each executive director (up to a maximum of 200% of contractual annual salary), for the year ended 31 March 2021 are set out in the table below. FY21 % bonus Bonus payout Bonus payout deferred ‘000 % salary under the CIP Brian Cassin £1,776 183% 100% Lloyd Pitchford £1,096 183% 100% Kerry Williams US$1,872 183% 100%

While the executive directors waived an entitlement to 25% of their contractual salaries for six months in FY21, their annual bonus entitlement was calculated – as is the case with all employees – based on their contractual annual salary entitlements, which are £972,500, £600,000 and US$1,025,000 respectively for Brian Cassin, Lloyd Pitchford and Kerry Williams. The bonus payout as a percentage of salary amounts above are based on these contractual salary entitlements, not the post-waiver salary amount the individual received in the year. Code principle Experian plc Annual Report 2021 Remuneration 121

Each of the executive directors has elected to defer their full bonus into Experian shares under the CIP for a three-year period. Deferred bonus shares are not subject to any further conditions but may be matched, subject to the conditions set out in the CIP awards section below.

Share-based incentives The share-based incentive amount included in the single total figure of remuneration is the combined value of the CIP and PSP awards vesting in respect of the relevant financial year. For FY21 these relate to the awards granted on 7 June 2018 and for FY20 they relate to the awards granted on 7 June 2017. Vesting in 2021 for both the CIP and PSP awards is determined based on performance over the three years ended 31 March 2021 as well as continued service. The Committee has not exercised any discretion, or made any adjustments, in determining the vesting outcomes for the 2018 LTI awards. The 2018 LTI targets were set in May 2018, when our growth ambitions were to achieve sustainable high single-digit growth. Our strong performance in the first two years of the performance period, combined with our resilient financial performance in FY21, where we continued to grow despite the challenges presented by the global pandemic, resulted in the formulaic vesting results outlined in the table below. The Committee reflected not just on the financial performance delivered, but also on the experience of our investors and employees over the three-year performance period, and considered the formulaic results to be a fair and balanced outturn and, as such, did not make any adjustments to the vesting results. The tables below show the performance achieved against the targets for the CIP and PSP awards granted in June 2018: Governance CIP awards 1 Vesting Percentage Performance measure Weighting No match 1:2 match 1:1 match 2:1 match Actual vesting2 Benchmark PBT per share (annual growth) 50% Below 5% 5% 6% 9% 7.4% 73% Cumulative Benchmark operating cash 50% Below US$3.7bn US$3.7bn US$3.8bn US$4.1bn US$4.2bn 100% flow3 Total 87%

PSP awards 1 Vesting Percentage Performance measure Weighting 0% 25% 50% 100% Actual vesting4 Benchmark PBT per share (annual growth) 75% Below 5% 5% 6% 9% 7.4% 73% TSR of Experian vs TSR of FTSE 100 Index 25% Below Index Equal to Index 8.3% above Index 25% above Index 65% above Index 100% Total 80%

1 Straight-line vesting between the points shown. 2 The maximum opportunity, which requires 100% vesting, results in a two-for-one match on the bonus deferred. 3 In line with the approach taken in previous years, the cumulative Benchmark operating cash flow targets shown above have been adjusted compared to those originally set to take into account the impact of acquisitions and disposals made over the performance period. The actual cumulative Benchmark operating cash flow over the performance period, of US$4.2bn, is determined on a constant currency basis. This is in line with our approach for all performance metrics, to ensure that awards are measured on a consistent basis. 4 The maximum opportunity was the original award with a face value of 200% of salary. Vesting of these awards was also subject to the Committee agreeing that the return on capital employed (ROCE) performance over the period was satisfactory. FY21 ROCE was 15%, and so the Committee was comfortable that the payout determined by applying the performance criteria was appropriate in the context of this level of performance. No discretion was applied in determining the share-based payments that vested in FY21. These awards had not vested at the date this report was finalised, and so the reported value of the awards has been based on the average share price in the last three months of the financial year, which was £25.58. The value of the awards included in the single total figure of remuneration is as follows:

Total value Value of of shares Value of dividend vesting and CIP PSP shares equivalent dividend Shares Shares Shares Shares vesting payments payments awarded vesting awarded vesting ‘000 ‘000 ‘000 Brian Cassin 111,130 96,294 100,699 80,534 £4,523 £192 £4,715 Lloyd Pitchford 68,488 59,344 62,173 49,722 £2,790 £118 £2,908 Kerry Williams 87,480 75,801 79,354 63,463 US$4,911 US$194 US$5,105

The value of Kerry Williams’ shares has been converted into US dollars at a rate of £1:US$1.379, which is the average rate during the last three months of FY21. Dividend equivalents of 139.25 US cents per share will be paid on vested shares. These represent the value of the dividends that would have been paid to the owner of one share between the date of grant and the date of vesting. Experian plc Governance Code principle 122 Remuneration

Annual report on directors’ remuneration continued

The chart below shows the make-up of the CEO’s FY21 single figure value, including £4.7m relating to the LTI. Of the £4.7m LTI value disclosed for the CEO, 71% is the value at grant, 4% is the value of dividend equivalent payments and 25% is a result of share price growth between the grant date and the average price over the last three months of the financial year – which grew by over 35%. The same proportions are true for the other executive directors.

Breakdown of FY21 CEO Single Figure % Experian 3-year TSR relative to FTSE 100 Index Experian FTSE 100 Index

£200 100% 18% £180 80% Fixed £160 60% 44% Annual bonus £140

40% £120 Long-term incentives 24% 20% (LTI) vesting £100

14% £80 0% LTI – share price March September March September March September March FY21 and dividends 2018 2018 2019 2019 2020 2020 2021 Update to 2020 disclosure We originally calculated the value of the share awards realised by our executive directors in 2020 using the average share price from 1 January 2020 to 31 March 2020, in line with the prescribed single figure methodology. This has now been revised to reflect the actual share price and exchange rate on vesting, as follows: Three-month Estimated value Actual value average share of long-term of long-term price to incentive awards Share price incentive awards 31 March 2020 ‘000 on vesting ‘000 Brian Cassin £7,563 £8,101 Lloyd Pitchford £25.63 £4,663 £27.53 £4,995 Kerry Williams US$7,934 US$8,400

What share-based incentive awards did we make in the year? (audited) On 11 June 2020, awards were granted to the executive directors under the CIP and PSP. The face value of awards made to Brian Cassin and Lloyd Pitchford is shown in pounds sterling; the face value of awards made to Kerry Williams is shown in US dollars. The number of shares awarded to Kerry Williams was calculated using the average exchange rate for the three days prior to grant of £1:US$1.27. All awards have been calculated using a three-day average share price. In line with the CIP rules, invested shares for Brian Cassin and Lloyd Pitchford were purchased with their bonuses net of tax. In line with the rules of The Experian North America Co-investment Plan, invested shares for Kerry Williams were calculated with reference to his gross bonus. Matching awards are based on the gross value of the bonus deferred. Details of these awards are set out in the following table: Face value Number Vesting at threshold Type of interest in shares Basis of award ‘000 of shares performance Vesting date Brian Cassin CIP invested shares Deferred shares 100% of net bonus £821 30,202 n/a 11 June 2023 CIP matching shares1 Nil-cost options 200% of value of gross bonus deferral £3,099 113,971 25% 11 June 2023 PSP2 Conditional shares 200% of salary £1,945 70,335 25% 11 June 2023 Lloyd Pitchford CIP invested shares Deferred shares 100% of net bonus £507 18,636 n/a 11 June 2023 CIP matching shares1 Nil-cost options 200% of value of gross bonus deferral £1,912 70,325 25% 11 June 2023 PSP2 Conditional shares 200% of salary £1,200 43,394 25% 11 June 2023 Kerry Williams CIP invested shares Deferred shares 100% of gross bonus US$1,631 47,285 n/a 11 June 2023 CIP matching shares1 Conditional shares 200% of value of gross bonus deferral US$3,262 94,570 25% 11 June 2023 PSP2 Conditional shares 200% of salary US$2,050 58,426 25% 11 June 2023

1 The number of shares awarded to executive directors under the CIP was based on the share price at which invested shares were purchased in the market and the face value shown above is based on this. This price was £27.19. 2 The number of shares awarded to executive directors under the PSP was based on the average share price for the three days prior to grant, which was £27.65, and the face value shown above is based on this. Code principle Experian plc Annual Report 2021 Remuneration 123

As disclosed in our 2020 Annual report on directors' remuneration, given the prevailing uncertainty in May 2020, when LTI targets would ordinarily be finalised, regarding the short- and longer-term impact of COVID-19, the Committee determined it appropriate to delay setting and disclosing 2020 LTI targets until later in the year. The chart below outlines the timeline and some of the factors the Committee considered when determining appropriate targets for the 2020 LTI plans.

March 2020 May 2020 September 2020 November 2020

At its March meeting the The Committee discussed the emerging impact At an additional meeting held in The Committee met again in Committee ordinarily has a of COVID-19 on our operating environment in the September the Committee began November when the emergence preliminary discussion about context of a number of key factors including: its initial discussion on potential of a second wave was clear and at possible targets for the The ambition to set stretching but attainable 2020 LTI targets taking into this time there were no emerging forthcoming year. However, targets, that reflect the emerging operating account: breakthroughs on vaccinations or as a result of the timing of and economic realities, which would therefore Anticipated half-year financial expectations for near-term the global pandemic these reduce the prospect of relying on discretion at performance, which provided a resumption of normal economic discussions were delayed in vest and therefore providing clarity and realistic view of the early environment. anticipation of increasing transparency for investors. impact of COVID-19 on our Based on the information clarity emerging about the operating environment; available at that time and likely global economic The population of our top talent (below Board level) that participate in the PSP/CIP plans Brokers' earnings estimates, incorporating analysts' impact of COVID-19. Governance with the same performance targets as the which reflected the general expectations the Committee set executive directors, and the need to attract, economic uncertainty at the stretching but attainable targets. motivate and retain that talent in an time and which were therefore The targets set reflected the increasingly competitive external market, across a wider range than anticipated impact of COVID-19 on particularly in North America. normal; and FY21 – while maintaining our The Committee’s strong preference was to Views on the longer-term unchanged ambitions for FY22 apply performance targets which reflect both economic outlook coloured by and FY23. (i) the current economic realities and (ii) our potential second waves of Targets were disclosed via RNS desire to rapidly return to the level of growth COVID-19 and by vaccine announcement on 26 November achieved in recent years. development. 2020. The Committee decided that, having considered Letters issued on 26 November to our investor experience and our resilient share our top 20 shareholders, to price performance to grant LTI awards in June provide additional context on the 2020 but subject to performance conditions that factors the Committee considered would be determined later in the year. At the in setting the 2020 LTI targets. time of the June 2020 grant the share price had returned to pre-pandemic levels and the Committee was satisfied there would not be any windfall gains.

In determining 2020 LTI plan targets, the Committee sought to maintain our ongoing commitment to setting stretching targets while balancing this with the need to (i) take account of the realities of COVID-19 for FY21, (ii) reflect our ambition to return to high single-digit growth in FY22 and FY23, while also (iii) ensuring targets are motivational, particularly for critical talent below Board level who participate in the CIP and PSP. The Committee determined the best approach to balancing these needs was to set the EPS targets to reflect the impact of COVID-19 in FY21 while challenging management to return to high single-digit growth in FY22 and FY23 and retain the existing stretching three-year targets for all other metrics. We consider this approach achieves the appropriate balance of setting targets that are challenging but attainable, and our expectation is that this approach will enable the Committee to apply the Policy without the need to rely on discretion for in-flight awards, or to adjust the performance outcomes of this award going forward. PSP awards and CIP matching shares granted in June 2020 will vest subject to the achievement of the following performance conditions: Vesting1 Performance measure Weighting 0% 25% 50% 100% CIP matching shares Benchmark Earnings per share (average annual growth)2 50% Below 3% 3% 4% 7% Cumulative Benchmark operating cash flow 50% Below US$3.7bn US$3.7bn US$3.8bn US$4.1bn PSP awards Benchmark Earnings per share (average annual growth)2 50% Below 3% 3% 4% 7% TSR of Experian vs TSR of FTSE 100 Index 25% Below Index Equal to Index 8.3% above 25% above Index Index Return on capital employed (average over three years) 25% Below 14.5% 14.5% 15.4% 16%

1 Straight-line vesting between the points shown. 2 Measured on an ongoing activities and constant currency basis. The Committee retains the right to vary the level of vesting if it believes that the level of vesting determined by measuring performance is inconsistent with the Group’s underlying financial and operational performance over the performance period. These awards will also only vest if the Committee is satisfied the vesting is not based on materially misstated financial results. Experian plc Governance Code principle 124 Remuneration

Annual report on directors’ remuneration continued

How is the CEO’s pay linked to Experian’s performance? The chart below shows Experian’s annual TSR performance compared to the FTSE 100 Index over the last ten years. The FTSE 100 Index is the most appropriate index as it is widely used and understood, and Experian is a constituent of the index. The chart also includes the CEO’s single figure value received in each of the years, to demonstrate the alignment between executive pay and shareholder experience. Value of £100 invested in Experian and the FTSE 100 on 31 March 2011 Experian FTSE 100 Index

£450

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£0 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

The table below sets out our CEO’s pay for the last ten financial years: 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CEO total single figure of remuneration (‘000)1 Don Robert US$23,206 US$22,974 US$16,290 US$620 — — — — — — Brian Cassin — — — £1,976 £3,678 £3,647 £6,387 £11,882 £10,836 £7,560 Annual bonus paid against maximum opportunity (%) Don Robert 100% 75% 50% — — — — — — — Brian Cassin — — — 38% 100% 89% 58% 85% 80% 91% LTIP vesting against maximum opportunity (%)2 Don Robert 100% 100% 94% 69% — — — — — — Brian Cassin — — — 40% 33% 32% 95% 90% 90% 84%

1 Prior year numbers have been updated to reflect actual long-term incentive plan outcomes. 2 The maximum LTIP opportunity varies as the CIP opportunity is based upon the actual bonus earned. CEO pay ratio Experian is committed to good corporate governance and transparency in the reporting of remuneration for our executive directors and employees. We have presented below the CEO pay ratio for the year ended 31 March 2021, in line with the UK regulatory requirements. The pay ratios have been calculated using Option A of the three methodologies provided under the new regulations, which we believe is the most statistically accurate approach. 25th percentile Median 75th percentile Year Method pay ratio pay ratio pay ratio Option A 267:1 178:1 112:1 2020 Total pay and benefits £38,630 £57,803 £91,736 Salary £33,362 £47,869 £77,000 Option A 185:1 124:1 81:1 2021 Total pay and benefits £40,969 £61,115 £93,574 Salary £32,569 £49,983 £75,000

The CEO value used is the total single figure remuneration data for FY21 of £7.6m, as outlined on page 118 of this Report. For UK employees, total pay and benefits are based on actual earnings for the year to 31 March 2021. Annual incentive payments for employees have been calculated using the Experian Group financial performance outcome for FY21, rather than any regional or market business performance results, to ensure a like-for-like comparison across remuneration structures. Selected employee grades below senior management level are also eligible for annual awards of restricted stock, rather than the performance share awards provided to senior management. Where applicable, the LTI value for employees has been calculated by applying the average share price for the three months prior to 31 March 2021 to the number of restricted stock awards granted to the employee in June 2018. We adopted this approach to provide a like-for-like comparison and ensure the share-price growth over the previous three years is reflected Code principle Experian plc Annual Report 2021 Remuneration 125

equally in both the CEO and employee LTI values. Employees on inbound and outbound international assignments to and from the UK have been excluded from the analysis as their remuneration structures understandably deviate from the standard approach for UK employees. In line with the guidance, only individuals employed for the full year have been included in the analysis.

Observations on change in CEO pay ratio The FY21 CEO single figure has reduced by c.30% compared to FY20. By comparison the total pay and benefits provided to UK employees in FY21 increased slightly over the previous year and as a result the FY21 CEO pay ratios for all percentiles are lower than for FY20. As mentioned previously, the CEO voluntarily waived 25% of his salary for six months in FY21, resulting in a significantly lower salary for the CEO than the previous year. Conversely, the salary amounts received by employees in FY21 remained broadly consistent with FY20 as we did not reduce any employee salaries, make any COVID-19 related redundancies or furlough any employees. In the interest of transparency, and to provide a true comparison with FY20, if the CEO had not waived any of his salary in FY21 the CEO pay ratio percentiles would have been 188:1, 126:1 and 82:1. The primary driver behind the lower FY21 CEO pay ratio is the value of the LTI received by the CEO in FY21. While the value of LTI awards that vested in FY21 was very strong, particularly given the external operating environment during the final year of the performance period, no adjustments were made to the vesting outturns to account for the impact of the global pandemic. Therefore, the LTI value that the CEO received in FY21 was considerably lower than in the previous year. By way of comparison, the total pay and benefit amounts received by UK employees in FY21 is slightly higher than FY20 due to a combination of the US$700 Thank You Share Award and the introduction of additional benefit policies in FY21 as a response to employee feedback Governance gathered as part of the UK Total Reward Optimisation project. The Committee believe it is appropriate that a significant proportion of total remuneration for executive directors is ‘at risk’ and driven entirely by Group performance, which is within their power to influence. In line with our remuneration principles the proportion of total compensation that is ‘at risk’ increases with employee seniority within the Group. The remuneration framework is designed to deliver market-competitive total compensation. All UK employees are also eligible to participate in the annual bonus plan, providing them with the opportunity to benefit from the financial performance that they help to deliver. Understandably more (71%) of the CEO’s total target remuneration is ‘at risk’ compared to c.8% on average for UK-based employees. As evidenced in FY21, the CEO pay ratio is therefore likely to vary, potentially significantly, over time based on the Group’s performance outcomes. Observations on FY21 pay ratio The median pay ratio for FY21 of 124:1 reflects not only the strong resilient performance achieved in this pandemic year, but also the exceptional performance achieved in the preceding two financial years, which are reflected in the CEO’s LTI vesting values. As LTI values can be highly variable, driven in part by fluctuations in share price, a supplemental pay ratio has been provided below, where the value of LTIs has been excluded. The CEO single figure value excluding LTI compensation was £2.9m for FY21. 25th percentile Median 75th percentile Year Method pay ratio pay ratio pay ratio FY20 Option A excluding long-term incentives 71:1 47:1 30:1 FY21 Option A excluding long-term incentives 69:1 47:1 30:1

Some important additional context regarding our FY21 CEO pay ratio includes: As mentioned in the Chairman's statement, we will be making a special one-off share recognition award to c.17,000 employees below senior management. Employees will be granted an initial share award of US$700, which will be matched on a 2:1 basis if employees continue to hold their shares for three further years. While the US$700 shares will not be granted until August 2021, the commitment to provide the award was communicated to all eligible employees in March 2021. As the award is a 'Thank You' for the commitment and dedication shown throughout FY21 and is not forfeitable, the US$700 initial share award has been included in the above analysis. Experian has been a Living Wage employer in the United Kingdom since 2015, and the median salary for UK employees (as reflected in the table on the previous page) is more than 50% above the UK average. The Committee always has the context of the all-employee pay review budget when determining salary increases for the CEO and ensures that any percentage increase for the CEO does not exceed that provided to employees. In FY21, the CEO’s salary reduced as he voluntarily waived 25% of his contractual salary for six months of the year, while UK employees’ base salary broadly remained the same as FY20. A global pay freeze was applied to all employees in FY21 but the average UK employee base pay did increase by 2.6% as a result of promotions etc. For FY22, the UK salary review budget is 2.5%, while the CEO’s salary will increase by 2.3%. An ‘individual performance modifier’ is applied in calculating the annual bonus payments for employees to ensure that the outstanding contributions of high-performing individuals is reflected through higher bonus payments. To ensure a like-for-like comparison with the CEO single figure, the employee calculations as outlined on the previous page do not reflect the impact of individual performance modifiers as they do not apply to senior management, including the CEO, which would have considerably increased the annual bonus payments for employees, as individual performance modifiers do not apply to senior management, including the CEO. We have also not included the value of our Sharesave scheme in the all-employee values on the previous page. We firmly believe in the value of employee share ownership and encourage employees to participate in our Sharesave offering, which is a tax-efficient plan in the UK and allows employees to share in Experian’s growth and success. Around 67% of UK employees participate in Sharesave and the average profit received by UK employees at maturity in FY21 was £5,125, but this value which has not been included in the all-employee values on the previous page. Experian plc Governance Code principle 126 Remuneration

Annual report on directors’ remuneration continued

How has our Board of directors' pay changed compared to the wider workforce? The table below sets out the percentage change in the Board of directors' salary/fees, benefits and annual bonus between FY20 and FY21, and how this compares to the average percentage change for our UK employees. While the Regulations require the employee comparison against employees of Experian plc, the proportion of our workforce employed by Experian plc is comparatively very small. We have therefore elected to provide the comparison against our UK employees which we believe will provide a more representative analysis. We have selected this group of employees because Experian operates in 44 countries and, as such, has widely varying approaches to pay across different regions. This approach also avoids the complexities involved in collating and comparing remuneration data across different geographic populations, including the impact of foreign exchange rate movements. The figures for UK employees are consistent with the information used to prepare the CEO pay ratio analysis, but reflect average salaries and average employee numbers each year, rather than percentile data. For the CEO, the annual bonus is based on Group performance. For UK employees, the annual bonus is based on the part of the business the individual works in. As outlined previously, the executive directors each waived 25% of their salaries for six months in FY21 and this is behind the year-on-year base salary change for Brian Cassin, Lloyd Pitchford and Kerry Williams. Year-on-year change in pay for directors compared to the average UK employee Independent Executive directors Chairman Non-executive directors Average Brian Lloyd Kerry Mike Dr Ruba Alison Caroline Deirdre Luiz George FY21 employee Cassin Pitchford Williams Rogers1 Borno Brittain2 Donahue Mahlan Fleury Rose Base salary change 2.6% -12% -12% -12% 21% -11% n/a -14% -11% -11% 0% Taxable benefits 7.1% 1% 3% 3% n/a n/a n/a n/a n/a n/a n/a Annual bonus 27.5% 15% 15% 15% n/a n/a n/a n/a n/a n/a n/a

1 FY21 was Mike Rogers' first full year as Chairman and the change to his base salary is a result of his receiving a full year's fees. 2 Alison Brittain joined the Board on 1 September 2020 and did not receive any fees in FY20.

How do we intend to implement the remuneration policy next year? Salary The table below outlines the salary increases that will take effect from 1 June 2021 for each Executive Director. The global employee salary review budget for FY22 is 3.2%, and for our employees in the UK and the USA the FY22 salary review budget will be 2.5%. 1 June 2021 1 June 2020 ‘000 ‘000 % increase Brian Cassin £995 £973 2.3% Lloyd Pitchford £615 £600 2.5% Kerry Williams US$1,050 US$1,025 2.4%

Annual bonus For the year ending 31 March 2022, the measures the executive directors are assessed on will remain unchanged from FY21. In line with our policy, we will disclose the targets for the annual bonus in next year’s Annual report on directors’ remuneration. While the FY22 annual bonus targets cannot be disclosed due to their commercial sensitivity they reflect our confidence in the outlook for the year ahead. Annual bonus will be subject to clawback provisions, allowing the Group to recover all or part of any payment for a period of three years from payment. In addition, the Committee can vary the level of payout if it considers that the formulaic payout determined by measuring performance is inconsistent with the Group’s actual underlying financial and operational performance. Performance is measured on a constant currency basis to strip out the effects of exchange rate fluctuations, which are outside of management’s control. The Committee also excludes the impact of any material acquisitions or disposals made in the year to ensure both metrics are measured consistently, which is in line with our approach to long-term incentive plan measures.

Share-based incentives While deferral of 50% is compulsory, the executive directors have each elected to defer the full 100% of their FY21 bonuses into the CIP. We expect to grant matching shares in the first quarter of the year ending 31 March 2022, on a two-for-one basis. We also expect to grant PSP awards equivalent to 200% of salary at the same time. The CIP and PSP awards will vest subject to meeting the following targets, which will be measured over three years, with a further two-year holding period applying: Vesting1 Performance measure Weighting 0% 25% 50% 100% CIP awards Benchmark Earnings per share (average annual growth)2 50% Below 5% 5% 7% 10% Cumulative Benchmark operating cash flow 50% Below US$4.0bn US$4.0bn US$4.2bn US$4.4bn PSP awards Benchmark Earnings per share (average annual growth)2 50% Below 5% 5% 7% 10% Return on capital employed 25% Below 14.5% 14.5% 15.4% 16% 8.3% above 25% above TSR of Experian vs TSR of FTSE 100 Index 25% Below Index Equal to Index Index Index

1 Straight-line vesting between the points shown. 2 Measured on an ongoing activities and constant currency basis. Code principle Experian plc Annual Report 2021 Remuneration 127

The Committee selected adjusted Benchmark EPS, cumulative Benchmark operating cash flow and ROCE as performance metrics for our long-term incentive plans, as they reflect three of our key performance indicators. As such, using these measures directly links Experian’s long-term incentive arrangements to our strategic aims and business objectives. In addition, using relative TSR recognises the importance of creating value for shareholders. We believe these measures to be the most appropriate measures of the Group’s success and, together with our annual bonus measures, they ensure that executive directors are incentivised to deliver on a wide range of business and financial measures over both the short and long term. The structure differentiates the role of each of our long-term incentive plans: the PSP incentivises returns and the CIP incentivises cash discipline. However, given that growth is so fundamental to our business strategy, Benchmark EPS runs across both of the long-term incentive plans. Vesting of CIP and PSP awards will be subject to the Committee being satisfied that the vesting is not based on materially misstated financial results. The Committee also retains the discretion to vary the level of vesting if it considers that the level of vesting determined by measuring performance is inconsistent with the Group’s underlying financial and operational performance. These awards will all be subject to clawback provisions, allowing the Company to recover all or part of any vested award during the holding period.

TSR performance We measure our TSR performance relative to the FTSE 100 Index, rather than against a bespoke comparator group. Our usual comparator companies are Alliance Data Systems, CoreLogic, Dun & Bradstreet, Equifax, FICO, LiveRamp, Moody’s, RELX, Thomson Reuters and TransUnion, however we believe that

it would be difficult to measure our TSR performance against them on a consistent basis, since many of them are listed in different markets and, as such, Governance may be subject to different market forces. However, the Committee uses them as a reference point when reviewing other aspects of executive director pay.

Additional disclosures Directors’ shareholdings and share interests (audited) We believe it is important that executive directors build up a significant holding in Experian shares, to align their interests with those of shareholders. Under our guidelines, the CEO should hold the equivalent of three times his or her base salary in Experian shares and other executive directors should hold the equivalent of two times their base salary. These guidelines include invested or deferred shares held under the CIP, but not matching shares. Shares that have vested but are subject to the two-year holding period will also count towards the guideline. Until the shareholding guideline is met, we expect executive directors to retain at least 50% of any shares vesting (net of tax) under a share award. Unvested shares do not count towards the guideline. We also have guidelines for non-executive directors to build up a holding in Experian’s shares equal to their annual fee. Each financial year, the net fee for the first quarter is used to purchase Experian shares until the non-executive director reaches this holding. As set out in the table below, our executive directors already significantly exceed their personal shareholding guidelines, demonstrating their personal alignment to shareholder interests as well as their commitment to Experian. To further strengthen this alignment post-employment, the Remuneration Committee introduced a two-year post-employment shareholding guideline as part of the 2020 Policy review. All executive directors that served during the year hold shares in excess of the relevant shareholding guidelines. The interests of the directors (at 31 March 2021) and their connected persons in the Company’s ordinary shares (as at 31 March 2021) are shown below and, for those individuals in the table below, there have been no changes between 31 March 2021 and the date of this report: Share awards subject to Shares held in Shareholding guidelines performance conditions Experian plc at Guideline 1 Shareholding CIP matching 31 March 2021 (% of salary/fee) (% of salary)2 Guideline met? awards3 PSP awards Share options4 Brian Cassin5 526,185 300% 1,351% Yes 359,717 252,154 — Lloyd Pitchford5 278,947 200% 1,161% Yes 221,906 155,615 1,470 Kerry Williams6 146,930 200% 493% Yes 293,860 205,118 — Mike Rogers7 15,287 100% 96% No — — — Dr Ruba Borno8 2,685 100% 50% No — — — Alison Brittain9 5,250 100% 97% No — — — Caroline Donahue 10,000 100% 185% Yes — — — Luiz Fleury 9,650 100% 179% Yes — — — Deirdre Mahlan 15,000 100% 214% Yes — — — George Rose 20,000 100% 231% Yes — — —

1 Executive director shareholding guideline will apply for two years post-employment. 2 Shareholding guidelines have been calculated using the closing share price on 31 March 2021, which was £24.97 and exchange rates at 31 March 2021 of £1:US$1.378 and £1:€1.1746. 3 Matching shares granted to Brian Cassin and Lloyd Pitchford are in the form of nil-cost options, which are unvested at 31 March 2021. Those granted to Kerry Williams are conditional share awards. 4 Share options granted under the all-employee Sharesave plan. 5 The number of Experian shares held by Brian Cassin and Lloyd Pitchford at 31 March 2021 includes 95,326 and 58,804 invested shares in the CIP respectively. 6 The number of Experian shares held by Kerry Williams at 31 March 2021 includes 146,930 shares awarded to him under The Experian North America Co-investment Plan as a result of his annual bonus deferral elections, in addition to his personal beneficial shareholding. Kerry Williams has an unconditional right to receive these Experian shares at the end of the relevant three-year deferral period. These shares do not carry dividend or voting rights prior to receipt. 7 Mike Rogers was appointed Chairman on 24 July 2019 and is continuing to build his shareholding. 8 Dr Ruba Borno joined the Board in 2018 and is still building up her shareholding. 9 Alison Brittain joined the Board on 1 September 2020 and is still building up her shareholding. Payments made to former directors (audited) Four former directors of Experian Finance plc (formerly GUS plc) received unfunded pensions from the Group. Two of the former directors are now paid under the Secured Unfunded Retirement Benefit Scheme, which provides security for the unfunded pensions of executives affected by the Her Majesty’s Experian plc Governance Code principle 128 Remuneration

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Revenue & Customs (HMRC) earnings cap. The total unfunded pensions paid to the former directors was £833,581 in the year ended 31 March 2021.

Payments for loss of office (audited) No payments for loss of office were made in the year (2020: nil).

Relative importance of spend on pay The table below illustrates the relative importance of spend on pay for all employees, compared to the financial distributions to shareholders, through dividends and earnings-enhancing share repurchases: 2021 2020 US$m US$m % change Employee remuneration costs 1,995 1,872 6.6% Dividends paid on ordinary shares 427 424 0.5% Estimated value of earnings-enhancing share repurchases — 16 -100%

The Remuneration Committee All our non-executive directors are members of the Committee, which met six times during the year ended 31 March 2021. Each member is considered to be independent in accordance with the UK Corporate Governance Code. The Committee’s terms of reference can be found at www.experianplc.com/about-us/corporate-governance/board-committees/. The Committee’s role and responsibilities The Committee is responsible for: 1 2 3 4 5 6 Recommending Determining Communicating Making Overseeing Overseeing to the Board individual with shareholders recommendations the Group’s broader employee senior executive remuneration on remuneration to the Board on executive pension workforce policies. remuneration policy packages for policy. the design of the arrangements. and the Chairman’s executive directors Group’s short- remuneration. and certain senior and long-term executives. incentive plans.

Committee activities During the year, the Committee: Reviewed and approved the 2020 Report on directors’ remuneration, and reviewed a draft of the 2021 Report on directors’ remuneration. Finalised the Remuneration Policy, which was put to shareholder vote at the 2020 AGM. Has continuously monitored the impact of COVID-19 on our business, and remuneration decisions taken across the Group, such as the decision to apply global pay freezes. Reviewed salaries of certain Group Operating Committee members and approved annual pay freezes for all Group Operating Committee members in FY21. Agreed the FY20 incentive plan outcomes, the FY21 bonus targets, and the long-term incentive plan participants. Received updates on the Company’s long-term incentive plans, including the impact of COVID-19 on these in-flight awards. Held an additional meeting in September 2020 to consider the impact of COVID-19 on our operating environment, its impact on our in-flight long-term incentive plan awards and to discuss performance targets for the 2020 long-term incentive awards. Discussed at length executive pay in the context of the wider workforce and the broader impact on society, the Group, and our shareholders. Was updated on all-employee pay and workforce policies across Experian. Following this update the Committee requested, and was provided with, detailed additional insights on all-employee pay, workforce policies and gender pay gap analysis in North America and Brazil, two of our key regions. Was updated on current trends in the executive remuneration environment, focusing on our key regions. Was updated on the Company’s FY21 gender pay gap disclosure requirement. The Committee had a robust discussion regarding the results and was provided with additional detailed analysis on Experian’s gender pay position. Was updated on the Company’s response to the UK CEO pay ratio disclosure requirement and reviewed the relevant disclosures. Initiated the invitation to employees to participate in the 2020 Sharesave plan, and was updated on take-up and outcomes of previous grants. Considered remuneration matters in respect of senior hires and departures and, where appropriate, approved remuneration packages for senior new hire awards below Board level. Reviewed the Committee’s performance during the year against its terms of reference; and Received feedback from the Chairman on the key topics discussed at the UK&I Experian People Forum. The Chairman of the Committee attended the Forum which was held virtually in March 2021, to engage with employees, discuss how Experian’s executive remuneration aligns with the wider Group pay policy, and understand employees’ views on pay-related issues. Code principle Experian plc Annual Report 2021 Remuneration 129

Advice provided to the Committee In making its decisions, the Committee consults the Chairman, the Chief Executive Officer and the Group Chief People Officer where required. We also invite members of the Global Reward team to attend Committee meetings as appropriate. We normally consult the Chief Financial Officer about performance conditions applying to short- and long-term incentive arrangements to ensure they are appropriately financially stretching. However, we do not consider it appropriate that executives are present when their own remuneration arrangements are being discussed. The Committee has access to independent consultants to ensure that it receives objective advice. We reviewed our external advisers in 2013 and appointed Towers Watson Ltd (Willis Towers Watson), who remained our external advisers throughout the year ended 31 March 2021. Willis Towers Watson provides other services to Experian globally, including advice on benefits and provision of market data. Additionally, both Mercer Kepler (from 1 April 2020 to 31 December 2020) and Ellason LLP (from 1 January 2021) provided incentive-plan award valuations and remuneration data, as well as supporting data for the target calibration process. Kepler does not provide any other services to the Group, although Mercer, Kepler’s parent company, does provide unrelated services to the Group. Ellason does not provide any other services to the Group. Willis Towers Watson, Mercer Kepler and Ellason are members of the Remuneration Consultants Group and voluntarily operate under the Code of Conduct in relation to executive remuneration consulting in the UK. The Committee was satisfied that their advice was objective and independent. The fees paid to these advisers for services to the Committee in the year ended 31 March 2021, based on hours spent, were as follows: Governance Adviser Fees paid in the year Willis Towers Watson £44,900 Mercer Kepler £3,600 Ellason £9,750

What did we pay our non-executive directors during the year? (audited) The table below shows a single total figure of remuneration for the Chairman and non-executive directors for the years ended 31 March 2021 and 31 March 2020: Fees ‘000 Benefits ‘000 Share-based incentives ‘000 Total ‘000 2021 2020 2021 2020 2021 2020 2021 2020 Mike Rogers1 €465 €385 — — — — €465 €385 Dr Ruba Borno €158 €179 — — — — €158 €179 Alison Brittain (appointed 1 September 2020) €92 — — — — — £92 — Caroline Donahue €158 €185 — — — — €158 €185 Luiz Fleury2 €210 €256 — — — — €210 €256 Deirdre Mahlan €206 €231 — — — — €206 €231 George Rose €254 €254 — — — — €254 €254

1 Mike Rogers was appointed Chairman of the Board on 24 July 2019 and receives an annual fee for this role of €465,000. 2 Luiz Fleury acted as an independent adviser to Serasa S.A., our Brazilian business. His remuneration includes a fee for this role, paid in Brazilian reais, along with the annual non-executive director’s fee. Non-executive director fees are reviewed every two years and were last reviewed in 2019. The current fee levels are as follows: Annual fee from Annual fee prior to 1 October 2019 1 October 2019 Base fee €158,250 €150,750 Audit Committee Chairman fee €47,750 €45,500 Remuneration Committee Chairman fee €38,250 €36,500 Deputy Chairman/Senior Independent Director fee €95,500 €91,000

Other than the Chairman, non-executive directors required to undertake intercontinental travel to attend Board meetings receive a supplementary payment of €6,000 per trip, in addition to any travel expenses. This amount has not changed since October 2009. No such payments were made in FY21 due to COVID-19 travel restrictions. George Rose holds the role of Chairman of the Remuneration Committee, in addition to his role as Senior Independent Director. George Rose does not receive an additional fee for his role as Chairman of the Remuneration Committee. Experian plc Governance Code principle 130 Remuneration

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Statement of voting at the 2020 AGM The voting to approve the Annual report on directors' remuneration and the Directors’ remuneration policy at the AGM held on 22 July 2020 is set out in the following table: Votes for (including discretionary votes) Votes against % % Total number Number of Number Number of votes cast votes withheld Annual report on directors’ remuneration 93.5% 6.5% 653,070,165 45,388,636 698,458,801 274,374 Directors’ remuneration policy 95.3% 4.7% 651,717,394 31,847,208 683,564,602 15,168,573

Service contracts Non-executive directors have letters of appointment that set out their duties and time commitment expected. They are appointed for an initial three-year term, subject to election and annual re-election by shareholders at the AGM. Appointments are renewed by mutual agreement. Details of current non-executive director arrangements as at 31 March 2021 are set out below: Length of service at 31 March 2021 Name Date of appointment Years Months Mike Rogers (appointed Chairman on 24 July 2019) 1 July 2017 3 9 Dr Ruba Borno 1 April 2018 3 0 Alison Brittain 1 September 2020 0 7 Caroline Donahue 1 January 2017 4 3 Luiz Fleury 8 September 2015 5 7 Deirdre Mahlan 1 September 2012 8 7 George Rose 1 September 2012 8 7

Executive directors’ service contracts contain a 12-month notice period, as set out in the Directors’ remuneration policy. Brian Cassin was appointed to the Board on 30 April 2012 as Chief Financial Officer, and 16 July 2014 as Chief Executive Officer. The date of appointment to the Board for Lloyd Pitchford was 1 October 2014 and for Kerry Williams was 16 July 2014. Code principle Experian plc Annual Report 2021 Remuneration 131 Directors’ remuneration policy

The Directors’ remuneration policy was last approved by shareholders at the AGM on 22 July 2020. We have included below the Policy table and the ‘Which clawback provisions apply?’ section, which we consider to be the most helpful sections of the Policy for investors. The full and original version of the Policy, as approved by shareholders, is available on the Experian corporate website at www.experianplc.com/investors/reports.

Maximum potential value Performance metrics Element and link to strategy Operation and payment at target and weightings Base salary To help with attracting and Base salary is paid in equal instalments Annual executive director When the Committee retaining executive directors during the year. salary increases will, in normal considers salary increases, of the right calibre. Salaries are reviewed annually, with any increases circumstances, be limited to the it takes into account Provides a base level of pay generally taking effect from 1 June. increases awarded across the individual performance Group as a whole. over the preceding and reflects the competitive Salary levels and increases take into account market salary for the role. Higher increases may be made in financial year.

a number of factors, including the approach to Governance Base salary level takes employee remuneration throughout the Group, exceptional circumstances including, account of personal prevailing economic conditions, best practice and but not limited to, a change in role or contribution and positioning against the market. responsibility, and will take account performance against of market practice in relation to Group strategy. the new role.

Benefits Benefits are provided as The Group provides a range of market-competitive The cost of providing such None. part of a competitive and benefits that include, but are not limited to, benefits may vary from year to year, cost-effective overall healthcare, financial and tax advice, death-in-service reflecting the cost to the Group. remuneration package. provision and company car or allowance. The Committee sets benefits at a Certain benefits may also Executive directors can also participate in any of the level it considers appropriate against be provided to support Group’s all-employee share plans, for example the relevant market practice, the role expatriates, where they Sharesave plan, on the same basis as other eligible and particular circumstances (for have relocated. employees. example, in the case of expatriate In the USA, eligible executive directors may benefits, where the individual is participate in a deferred compensation plan, which is required to relocate). standard market practice in the USA. For expatriate assignments, we retain the flexibility to tailor benefits to the circumstances of the assignment. Additional benefits may include relocation expenses at the beginning and end of each assignment, housing allowance and school fees.

Pension Provides a market-aligned Pension arrangements are in line with local In the UK, the cash payment or None. retirement provision. market practice. pension contribution for current In the UK, the Group operates a defined contribution executive directors is normally equal plan, with company contributions set as a percentage to 20% of annual gross base salary. of base salary. If impacted by HMRC pension limits, an Future UK-based executive directors individual may elect to receive a cash allowance will receive a cash payment or instead. pension contribution aligned to the wider UK employee workforce (to In the USA, executive directors are eligible to join a apply to all incumbents by the defined contribution plan. end of 2022). In the USA, the contribution rate is up to 4% of earnings, up to an annual compensation limit set by the Internal Revenue Service. If required, pension arrangements in other jurisdictions would be in line with local market practice. Experian plc Governance Code principle 132 Remuneration

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Maximum potential value Performance metrics Element and link to strategy Operation and payment at target and weightings Annual bonus Motivates and rewards the The Committee sets appropriate performance targets Threshold performance results in a The annual bonus may be achievement of specific at the start of each financial year. bonus payout equivalent to 25% of the based entirely on financial annual objectives, linked to At the end of the financial year, the Committee maximum. No bonus is payable for performance or on a Experian’s business strategy. determines the extent to which these have been below-threshold performance. combination of financial, satisfied, based on audited results, and agrees the Achieving target performance results strategic and/or level of bonus to be paid. in a bonus payout equivalent to 50% operational objectives. Half of any bonus must be deferred for a period of of the maximum. However, the financial three years. However, the executive director may elect Achieving maximum performance element will comprise at to defer up to 100% of their bonus into the CIP. Where results in full bonus payout of 200% least 70% of the bonus. they elect not to do so, payment is made as soon as of salary. The Committee retains the practicable after the financial year end. ability to exercise its Malus and clawback provisions apply, under which judgment to vary the level annual bonus payments may be reduced or recovered of payout if it considers in certain circumstances. Further details about our that the formulaic payout clawback and malus policy are set out in the Which determined by measuring clawback provisions apply? section of the report. performance is inconsistent with the Group’s actual underlying financial and operational performance.

Co-investment Plans Aligns with shareholder Participants are invited to invest between 50% and Maximum award levels depend on Awards vest based on interests through voluntary 100% of their annual bonus into Experian shares. the bonus deferred, which will be financial performance and investment of personal A conditional award of matching shares or nil-cost matched on up to a two-for-one basis. subject to the Committee capital, delivery of Experian options is granted on a two-for-one basis on the gross There is no vesting for below- being satisfied that the shares and the long-term bonus deferred, and vests after three years subject to threshold performance. vesting is not based on time horizons. achieving performance targets over the three-year materially misstated Achieving threshold performance financial results. Use of stretching financial period. Any vested awards are subject to a further two- results in 25% vesting of the metrics incentivises year holding period. matching shares. The Committee retains the performance. Dividend equivalents accrue on all awards of shares. discretion to exercise its Achieving target performance results judgment to vary the level Encourages participants’ Malus and clawback provisions apply, under which CIP in 50% vesting of the matching long-term commitment to of vesting if it considers the awards may be reduced or recovered in certain shares. formulaic vesting level the Group through personal circumstances. Further details about our clawback investment. Achieving maximum performance determined by measuring and malus policy are set out in the Which clawback results in full vesting of the matching performance to be provisions apply? section of the report. shares. inconsistent with the Group’s actual underlying financial and operational performance.

Performance Share Plan Use of stretching financial Participants receive an annual award of conditional Normal maximum award levels are Vesting of up to 25% of the metrics incentivises shares or nil-cost options, which vest after three years, 200% of salary. awards is based on a performance. subject to achieving performance targets over the Awards of up to 400% of salary may share-based metric, with Aligns with shareholder three-year period. Any vested awards are subject to a be made in exceptional the balance based on interests through delivery of further two-year holding period. circumstances such as recruitment. financial performance. shares and the long-term Dividend equivalents accrue on all awards of shares. There is no vesting for below- The Committee retains the time horizons. Malus and clawback provisions apply, under which threshold performance. ability to vary the level of PSP awards may be reduced or recovered in certain vesting if it considers the Achieving threshold performance formulaic vesting level circumstances. Further details about our clawback results in 25% of the shares vesting. and malus policy are set out in the Which clawback determined by measuring provisions apply? section of the report. Achieving maximum performance performance to be results in full vesting of the shares. inconsistent with the Group’s actual underlying financial and operational performance. Code principle Experian plc Annual Report 2021 Remuneration 133

Maximum potential value Performance metrics Element and link to strategy Operation and payment at target and weightings Shareholding guideline To preserve and enhance the During employment: N/A N/A long-term alignment of the Executive directors are required to establish and interests of executive maintain a minimum personal shareholding equal to directors with shareholders 3x base salary for the CEO and 2x base salary for and promote a long-term other executive directors. approach to performance and risk management. Executive directors are required to retain at least 50% of any shares vesting under the CIP and PSP (net of tax) until their during-employment shareholding guideline has been met. Shares held beneficially, shares subject to a post-vesting holding period and invested or deferred CIP shares will count when assessing the guideline. Share awards that are still subject to performance Governance conditions and matching shares under the CIP are not included. Post-employment: For two years following cessation, (former) executive directors will be required to retain the lower of: their actual shareholding immediately prior to cessation; and their shareholding guideline immediately prior to cessation. In determining the actual shareholding at cessation, shares acquired from own purchases will not be counted.

Independent Chairman and non-executive director (NED) fees To attract individuals with a The Chairman is paid an annual fee in equal monthly The Committee sets the Chairman’s No performance-related broad range of experience instalments. The Group may provide the Chairman fees, while NED fees are set by the arrangements are in place and skills, to oversee the with a limited range of benefits such as healthcare, tax Board. Both are set based on a for the Chairman or the implementation of our advice or use of a car. number of factors, including the time NEDs. strategy. The NEDs are paid a basic fee plus additional fees for commitment required and positioning chairing a Board Committee and for the role of Deputy against the market. Chairman or Senior Independent Director. NED fees Fees are normally reviewed every are paid in equal quarterly instalments during the year. two years. The net fee for the first quarter of the financial year is used to purchase Experian shares for NEDs and/or the Chairman (as applicable), until the individual has met their shareholding guideline of 1x their estimated annual fee (excluding travel fees). NEDs receive an additional fee where attendance at Board meetings involves intercontinental travel from their home location. The Company may settle any tax due on travel expenses incurred by the Chairman and NEDs.

Share Option Plan (SOP) Provides focus on increasing Options are granted with an exercise price equivalent Normal maximum award levels are The vesting of options is Experian’s share price over to the market value of an Experian share at the date of 200% of salary. based on financial the medium to longer term. grant. These vest subject to achieving performance Grants of up to 400% of salary may performance targets. targets that are tested over a three-year period and be made in exceptional are exercisable for seven years thereafter. circumstances such as on No option grants have been made since 2009 and the recruitment. Committee has agreed that no further awards will be There is no vesting for below- made, unless warranted by exceptional circumstances threshold performance. such as recruitment. Achieving threshold performance Malus and clawback provisions apply, under which results in 25% of the options vesting. SOP awards may be reduced or recovered in certain circumstances. Further details about our clawback Achieving maximum performance and malus policy are set out in the Which clawback results in full vesting of the options. provisions apply? section of the report. Experian plc Governance Code principle 134 Remuneration

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Which clawback provisions apply? Clawback and/or malus applies to the Company’s incentive plans for five years from grant. Under these provisions, the Committee may apply clawback or malus in circumstances which have: resulted in a level of vesting or payment which is higher than would otherwise have been, because of a material misstatement of the Group’s financial results; or led to a material financial or eputationalr loss for the Group, due to serious individual misconduct. Under our malus and clawback policy, should a trigger event be identified, a Clawback Committee would be appointed by the Remuneration Committee to investigate the issue. The Clawback Committee would report back with recommendations on whether malus and/or clawback should be applied, which individuals this should affect, which remuneration should be subject to malus and/or clawback and the value that should be impacted. The Remuneration Committee would then have final sign-off on any decision to operate clawback or malus.

Legacy arrangements The Committee reserves the right to make any remuneration payments and payments for loss of office (including exercising any discretions available to it in connection with such payments) notwithstanding that they are not in line with the policy set out in this report where the entitlement to the payment arose (i) before the 2020 AGM; (ii) at a time when the relevant individual was not a director of the Company and, in the opinion of the Committee, the payment was not in consideration for the individual becoming a director of the Company; or (iii) under a remuneration policy previously approved by the Company’s shareholders. For these purposes entitlements arising under the Company’s current remuneration policy (as approved by shareholders at the 2017 AGM) will be incorporated into this policy and ‘payments’ includes the Committee satisfying awards of variable remuneration, and an entitlement under an award over shares arises at the time the award is granted.

On behalf of the Remuneration Committee

Charles Brown Company Secretary 18 May 2021 Experian plc Annual Report 2021 135

Directors' report

The directors present their report and the audited financial statements for Political donations the year ended 31 March 2021. The report has been prepared in line with Experian did not make any political donations during the year ended 31 the UK Companies Act 2006, and the Corporate governance report and the March 2021. Shareholder and corporate information section form part of this Directors’ report. The Strategic report contains certain information equivalent to that required in a report of the directors. Going concern Details of the adoption of the going concern basis in preparing the Group Financial and operational information financial statements are set out in note 2 to the Group financial statements and are incorporated into this report by reference. Results and dividend The Group income statement shows a profit for the financial year ended Directors 31 March 2021 of US$802m (2020: US$677m). The directors have announced the payment of a second interim dividend, in lieu of a final Information on directors holding office in the year dividend, of 32.5 US cents per ordinary share (2020: 32.5 US cents) to be The directors’ names, biographical details, and skills and experience are paid on 23 July 2021 to shareholders on the register of members on 25 shown in the Board of directors section. Alison Brittain was appointed as June 2021. A first interim dividend of 14.5 US cents per ordinary share an independent non-executive director on 1 September 2020 and was paid on 5 February 2021, giving a total dividend for the year of 47.0 Jonathan Howell was appointed as an independent non-executive director Governance US cents per ordinary share (2020: 47.0 US cents). with effect from 1 May 2021. Particulars of directors’ remuneration, service contracts and interests in Innovation the Company’s ordinary shares are shown in the Report on directors’ Innovation, supported by our talented people, and by research and remuneration. There were no changes in the directors’ (as at 31 March development, plays a key role in supporting Experian’s business 2021) interests in the ordinary shares between the end of the financial performance. Details of such activities are given in the Strategic report. year and 18 May 2021. In line with the UK Corporate Governance Code, as at the date of this Acquisitions report, all directors, being eligible, will offer themselves for election or re-election at the 2021 AGM. An evaluation of the performance of the Information in respect of acquisitions made during the year is contained Board, its committees and individual directors was carried out during the in note 41 to the Group financial statements. financial year. The Board is satisfied that all directors seeking election or Registered branch re-election contribute effectively and demonstrate commitment to their roles. The Corporate governance report contains further details of the The Company has a branch registered in Ireland under branch number evaluation process. 905565. Insurance and third-party indemnification Post balance sheet events During the year and up to the date of approval of this Annual Report, the Details of events occurring after the end of the reporting period are Company maintained liability insurance and third-party indemnification contained in note 45 to the Group financial statements. provisions for its directors and officers.

Share capital Appointment and removal of directors Details of the Company’s share capital and changes during the year ended Both the Company, by ordinary resolution, and the directors may elect any 31 March 2021 are set out in note P to the Company financial statements. person to be a director. The number of directors shall not exceed the maximum number fixed by the Company’s articles of association. Any Financial risk management, objectives and policies person appointed by the directors shall only hold office until the next AGM Descriptions of the use of financial instruments and Experian’s treasury and shall then be eligible for election. The office of a director shall be and risk management objectives and policies are set out in the Financial vacated on the occurrence of any of the events listed in article 92 of the review within the Strategic report and also in note 7 to the Group financial Company’s articles of association. The Company may, in accordance with statements. its articles of association, remove any director from office and elect another person in their place. 136 Experian plc Governance

Directors' report continued

Annual General Meeting Where participants in a share-based employee incentive plan operated The Company’s 2021 AGM will be held in Dublin, Ireland, on Wednesday 21 by Experian are the beneficial owners of the shares but not the July 2021. Shareholders may submit questions beforehand via email to registered owner, the voting rights are normally exercised by the [email protected] or on the prepaid card sent to registered owner at the direction of the participants. shareholders with the notice of meeting. The questions will be addressed Shares carry no voting rights while they are held in treasury. at the meeting, via the Company’s website at www.experianplc.com or The deferred shares in the Company carry no voting rights. individually as appropriate. The notice of meeting has been circulated to Unless the directors determine otherwise, members are not entitled to shareholders and can also be viewed on the Company’s website. vote personally or by proxy at a shareholders’ meeting, or to exercise any other member’s right in relation to shareholders’ meetings, in Share capital information respect of any share for which any call or other sum payable to the Company remains unpaid. Rights and obligations Unless the directors determine otherwise, members are not entitled to The rights and obligations attaching to the ordinary and deferred shares vote personally or by proxy at a shareholders’ meeting, or to exercise are set out in note P to the Company financial statements and in the any other member’s right in relation to shareholders’ meetings, if the Company’s articles of association, a copy of which can be obtained from member fails to provide the Company with the required information the Experian website, www.experianplc.com. The Company’s articles of concerning interests in those shares, within the prescribed period after association may be amended by passing a special resolution. being served with a notice under the Company’s articles of association. ADR programme The Company’s articles of association state that, except for certain limited circumstances, if the number of shares in the Company The Company has a Level 1 American Depositary Receipt (ADR) beneficially owned by residents of the USA exceeds a defined permitted programme in the USA, for which The Bank of New York Mellon acts as maximum and the directors give notice to the holder(s) of such shares, depositary. The ADRs are traded on the highest tier of the US the shares do not give their holder(s) the right to receive notice of, over-the-counter market, OTCQX, with each ADR representing one attend or vote at the Company’s general meetings. Experian plc ordinary share. Further details are given in the Shareholder Details of deadlines in respect of voting for the 2021 AGM are contained in and corporate information section. the notice of meeting that has been circulated to shareholders and which can also be viewed at the Company’s website. Substantial shareholdings The Company’s articles of association oblige shareholders to comply with Purchase, cancellation and holdings of own shares the notification obligations contained in the UK Disclosure Guidance and The existing authority for the Company to purchase its own shares was Transparency Rules sourcebook. As at 18 May 2021, the Company had given at the AGM held on 22 July 2020. It permits the Company to been notified of the indirect interest below in its issued ordinary share purchase 90,830,113 of its own shares in the market. capital or voting rights in respect of the year. On 8 June 2020, the Company transferred 944,435 ordinary shares from Restrictions on transfers of shares and/or voting rights treasury to Computershare Investor Services plc and Computershare Trustees (Jersey) Limited, the administrator and trustee respectively of The Company is not aware of any agreements between shareholders that Experian’s share plans, for nil consideration, to be used to meet may result in restrictions on the transfer of securities and/or voting rights obligations under employee share plans. On 29 June 2020, the Company and, apart from the matters described below, there are no restrictions on transferred 7,202,137 ordinary shares from treasury as consideration for the transfer of the Company’s ordinary shares and/or voting rights: a majority stake in a German credit bureau, the Risk Management division Certain restrictions on transfers of shares may from time to time be of Arvato Financial Solutions (AFS). imposed by, for example, share dealing regulations. In certain As at the date of approval of this Annual Report, the Company holds situations, directors and certain employees are required to seek the 52,278,013 (2020: 60,424,585) of its own shares as treasury shares, and Company’s approval to deal in its shares. had an unexpired authority to purchase up to 90,830,113 of its own Some of Experian’s share-based employee incentive plans include shares. Details of the new authority being requested at the 2021 AGM are restrictions on the transfer of shares, while the shares are subject to contained in the circular to shareholders, which either accompanies this the plan concerned. Annual Report and/or is available on the Company’s website at www. As described in the Report on directors’ remuneration, non-executive experianplc.com. directors must hold a proportion of their fees in shares, equal to their Details of the shares in the Company purchased by and held under The annual fee. These shares may not normally be transferred during their Experian plc Employee Share Trust and the Experian UK Approved All period of office. Employee Share Plan are set out in note Q to the Company financial statements.

Substantial shareholdings

Percentage of Number of issued share ordinary shares/ capital/voting Date of notification Shareholder voting rights rights 24 September 2020 Massachusetts Financial Services Company 45,727,422 4.99% Experian plc Annual Report 2021 137

Significant agreements – change of control Auditor information The Group is party to a number of agreements that take effect, alter, terminate, or have the potential to do so, upon a change of control of the Relevant audit information Company following a takeover bid. These agreements are as follows: As at 18 May 2021, so far as each director is aware, there is no relevant audit information, being information needed by the auditor in connection The Group’s banking facilities contain provisions which, in the event of a with preparing the audit report, of which the auditor is unaware, and each change of control, could result in their renegotiation or withdrawal. director has taken all steps that he or she ought to have taken as a The Group’s Euronotes allow holders to require repayment of the notes, director in order to make himself or herself aware of any relevant audit if a rating agency re-rates the notes to below investment grade, information and to establish that the auditor is aware of that information. following a change of control. All of Experian’s share-based employee incentive plans contain Independent auditor provisions relating to a change of control. Outstanding awards and The auditor, KPMG LLP, has indicated its willingness to continue in office options would normally vest and become exercisable, subject to and a resolution that it be re-appointed as the Company’s auditor will be satisfaction of any performance conditions at that time. proposed at the AGM. The Group is party to a limited number of operational arrangements

which can be terminated or altered upon a change of control of the Statement of directors’ responsibilities Governance Company, but these are not considered to be individually significant to The directors are responsible for: the Group’s business as a whole. In certain cases, it is considered that their disclosure would be seriously prejudicial to the Company. Preparing the Annual Report, the Group and Company financial statements in accordance with applicable law and regulations. The Employment information directors have decided to prepare voluntarily a directors’ remuneration report in accordance with Schedule 8 to The Large and Medium-sized Employment of people with disabilities Companies and Groups (Accounts and Reports) Regulations 2008 made People with disabilities have equal opportunities when applying for under the UK Companies Act 2006, as if those requirements applied to vacancies. In addition to complying with legislative requirements, the the Company. Group has procedures to ensure that it treats disabled employees fairly Preparing financial statements which give a true and fair view of the and carefully manages their training and career development needs. The state of affairs at the balance sheet date, and the profit or loss for the policies are considered to operate effectively. The Group supports period then ended of (a) the Group (in accordance with IFRSs as employees who become disabled during the course of their employment, adopted for use in the European Union), and (b) the Company (in by offering re-training or re-deployment, to enable them to remain with accordance with UK Accounting Standards including FRS 101 ‘Reduced the Group whenever possible. Disclosure Framework’). Keeping sufficient accounting records which disclose, with reasonable Employee involvement accuracy, at any time the financial position of the Group and the Experian is committed to employee involvement throughout the business. Company and enable them to ensure that the Group financial The Group is intent on motivating staff, keeping them informed on matters statements comply with applicable laws. that concern them in the context of their employment, and involving them Maintaining such internal control as they determine is necessary to through local consultative procedures. Where there are recognition enable the preparation of financial statements that are free from agreements with trade unions, the consultation process is established material misstatement, whether due to fraud or error, and have general through national and local trade union representatives and through joint responsibility for taking such steps as are reasonably open to them to consultation committees. safeguard the assets of the Group and the Company and to prevent and Employees are kept well informed on matters of interest and the financial detect fraud and other irregularities. and economic factors affecting the Group’s performance. This is done The maintenance and integrity of the statutory and audited information through management channels, conferences, meetings, publications and on the Company’s website. Jersey legislation and UK regulation intranet sites. More detail on employee engagement, together with governing the preparation and dissemination of financial statements information on corporate responsibility, diversity, succession planning and may differ from requirements in other jurisdictions. talent development, can be found in the Our sustainable business In addition, the directors consider that, in preparing the financial strategy: Environmental, Social and Governance section of the Strategic statements: report. suitable accounting policies have been selected and applied Experian supports employee share ownership by providing, whenever consistently; possible, employee share plan arrangements which are intended to align judgments and estimates made have been reasonable, relevant and employees’ interests with those of shareholders. reliable; the Group financial statements comply with IFRSs as adopted for use in the European Union, subject to any material departures disclosed and explained in the financial statements; 138 Experian plc Governance

Directors' report continued

the Group’s and Company’s ability to continue as a going concern has been assessed and, as applicable, matters related to going concern have been disclosed; the Company financial statements comply with UK Accounting Standards including FRS 101 ‘Reduced Disclosure Framework’; and it is appropriate that the Group and Company financial statements have been prepared on the going concern basis, unless it is intended to liquidate the Company or any Group company, or to cease operations or there is no realistic alternative to do so. The directors also confirm that, to the best of their knowledge, the financial statements are prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole; and the Strategic report contains a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

In addition, each of the directors considers that the Annual Report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group’s position and performance, business model and strategy. By order of the Board

Charles Brown Company Secretary 18 May 2021

Corporate headquarters: Registered office: Newenham House 22 Grenville Street Northern Cross St Helier Malahide Road Jersey Dublin 17 JE4 8PX D17 AY61 Channel Islands Ireland Experian plc Annual Report 2021 139 Financial statements

140 Independent auditor’s report 180 25. C ash and cash equivalents - excluding bank overdrafts Group financial statements 181 26. Trade and other payables 147 Group income statement 181 27. Borrowings 148 G roup statement of 182. 28 Net debt (non-GAAP measure) comprehensive income 184 29. Leases 149 Group balance sheet 185 30. Financial assets and liabilities 150 G roup statement of changes in equity 190 31. Fair value methodology 151 Group cash flow statement 190 32. C ontractual undiscounted future cash flows for financial liabilities 191 33. Share incentive plans Notes to the Group financial statements 193 34. P ost-employment benefit plans 152 1. Corporate information and related risks 152 2. Basis of preparation 194 35. P ost-employment benefits – 152 3. Recent accounting developments IAS 19 information 152 4. Significant accounting policies 197 36. Deferred and current tax 159 5. Critical accounting estimates, 199 37. Provisions assumptions and judgments 199 38. C alled-up share capital and 160 6. U se of non-GAAP measures in the share premium account Group financial statements 199. 39 Retained earnings and 161 7. Financial risk management other reserves 163 8. Revenue 200 40. N otes to the Group cash flow statement 164 9. Segment information 202 41. Acquisitions 169 10. Foreign currency 203 42. Capital commitments 169 11. L abour costs and employee numbers – continuing operations 204 43. Contingencies Financial statements 170  12. Amortisation and depreciation 204 44. Related party transactions charges 205 45. E vents occurring after the end 170 13. F ees payable to the of the reporting period Company’s auditor 171 14. E xceptional items and Company financial statements other adjustments made to derive Benchmark PBT – 206 Company profit and loss account continuing operations 206 C ompany statement of 172 15. N et finance costs comprehensive income 173 16. Tax charge 206 Company balance sheet 174 17. Discontinued operations 207 C ompany statement of changes in equity 175 18. Earnings per share disclosures 208 N otes to the Company 175 19. Dividends financial statements 176 20. Goodwill 177 21. Other intangible assets 178 22. Property, plant and equipment 179. 23 Investments in associates 179 24. Trade and other receivables 140 Experian plc Financial statements

Independent auditor’s report To the members of Experian plc

1 Our opinion is unmodified Basis for opinion We have audited the Financial Statements of Experian plc (the Company We conducted our audit in accordance with International Standards on or the Parent Company) for the year ended 31 March 2021, which Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities are comprise the Group income statement, Group statement of described below. We believe that the audit evidence we have obtained comprehensive income, Group balance sheet, Group statement of is a sufficient and appropriate basis for our opinion. Our audit opinion changes in equity, Group cash flow statement, Company profit and loss is consistent with our report to the Audit Committee. account, company statement of comprehensive income, Company We were first appointed as auditor by the shareholders on 20 July 2016. balance sheet, Company statement of changes in equity , and the related The period of total uninterrupted engagement is for the five financial notes, including the accounting policies in note 4 to the Group Financial years ended 31 March 2021. We have fulfilled our ethical responsibilities Statements and note D to the Company Financial Statements. under, and we remain independent of the Group in accordance with, UK In our opinion: ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that the Group Financial Statements give a true and fair view, in accordance standard were provided. with the International Financial Reporting Standards (IFRS) as adopted by the European Union, of the state of the Group’s affairs as at 31 Overview March 2021, and of its profit for the year then ended; Materiality: US$48m (2020: US$47m) the Parent Company Financial Statements give a true and fair view, in Group Financial 4.5% (2020: 5.0%) of Group profit before tax accordance with UK accounting standards, including FRS 101 Reduced Statements as a (continuing operations) Disclosure Framework, of the state of the Parent Company’s affairs as whole at 31 March 2021 and of its profit for the year then ended; and Coverage 89% (2020: 89%) of Group revenue the financial statements have been prepared in accordance with 93% (2020: 81%) of Group profit before tax Companies (Jersey) Law 1991. (continuing operations) 89% (2020: 89%) of Group total assets Additional opinion in relation to IFRS as adopted by the Key audit matters vs 2020 International Accounting Standards Board (IASB) Uncertain tax positions As explained in note 2 to the Group Financial Statements, the Group, in Provisions for litigation and contingent liabilities addition to applying IFRS as adopted by the European Union, has also applied IFRS as issued by the IASB. Impairment of goodwill Recoverability of Parent Company’s investment in and amounts In our opinion, the Group Financial Statements have been properly due from subsidiaries prepared in accordance with IFRS as issued by the IASB.

2 Key audit matters: our assessment of risks of material misstatement Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the Financial Statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. We summarise below the key audit matters, in decreasing order of audit significance, in arriving at our audit opinion above, together with our key audit procedures to address those matters and, as required for public interest entities, our results from those procedures. These matters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the Financial Statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these matters. The risk Our response Tax – uncertain tax positions Dispute outcome We performed the tests below rather than seeking to rely on (US$350m; 2020: US$327m) Experian operates in a number of territories worldwide with any of the Group's controls because the nature of the balance complex local and international tax legislation. Significant is such that we would expect to obtain audit evidence primarily Refer to the Audit Committee through the detailed procedures described. Report within the Corporate uncertainties arise over ongoing tax matters in the UK, the Governance Report and the USA, Brazil and Colombia. Tax provisioning for uncertain tax Our audit procedures included: Group Financial Statements positions is judgmental and requires estimates to be made Our tax expertise: Using our own tax specialists to perform notes 4,5,16, 36 and 43(a). in relation to existing and potential tax matters. an assessment of the Group’s tax positions through the The effect of these matters is that, as part of our risk inspection of correspondence with the relevant tax assessment, we determined that uncertain tax provisions authorities and critically assessed the advice that the Group have a high degree of estimation uncertainty, with a potential has received from external advisors. We challenged the range of reasonable outcomes greater than our materiality assumptions applied using our own expectations based on for the Financial Statements as a whole, and possibly many our knowledge of the Group and considered relevant times that amount. judgments passed by authorities; and Assessing transparency: Assessing the adequacy of the Group’s disclosures in respect of uncertain tax positions. Our results We found the level of tax provisioning and disclosures to be acceptable (2020 result: acceptable). Experian plc Annual Report 2021 141

2 Key audit matters: our assessment of risks of material misstatement continued The risk Our response Provisions for litigation Dispute outcome We performed the tests below rather than seeking to rely on and contingent liabilities The Group operates in an industry with continuously any of the Group's controls because the nature of the balance (US$10m; 2020: US$30m) increasing levels of regulation, including both the EU and UK is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Refer to the Audit Committee General Data Protection Regulations, Consumer Finance Report within the Corporate Protection Bureau in the USA and various federal and state Our audit procedures included: Governance Report and the legislative developments in Brazil, which increase the Enquiry of lawyers: On all significant legal cases, where Group Financial Statements potential for regulatory breaches and penalties. necessary, assessment of correspondence with the Group’s notes 5, 37 and 43. High levels of consumer litigation continue in the USA and external lawyers was performed to corroborate our Brazil. The outcome of such litigation is uncertain and any understanding of these matters, accompanied by position taken by the Group involves significant judgment discussions with internal counsel, as well as challenging the and estimation. Group’s assumptions on the likelihood and quantum of The effect of these matters is that, as part of our risk potential cash outflows; and assessment, we determined that the litigation liability has a Historical comparisons: Comparing the outcomes of high degree of estimation uncertainty, with a potential range historical legal cases to current cases with similar fact of reasonable outcomes greater than our materiality for the patterns; and Financial Statements as a whole, and possibly many times Assessing transparency: Assessing whether the Group’s that amount. In conducting our final audit procedures, based disclosures detailing significant legal proceedings on the status of ongoing matters at the year end date, we adequately disclose the potential liabilities of the Group. reassessed the degree of estimation uncertainty to be less significant. The risk at that date was principally over the Our results judgment of whether to record certain provisions and /or We consider the provisions for litigation recognised and disclose contingent liabilities. contingent liability disclosures made to be acceptable (2020 result: acceptable).

Goodwill impairment in respect Forecast-based valuation We performed the tests below rather than seeking to rely on of the EMEA and Asia Pacific Following the impairment recognised in the Asia Pacific CGU, any of the Group's controls because the nature of the balance cash generating units (CGUs) the audit risk has reduced compared to the prior year. is such that we would expect to obtain audit evidence primarily through the detailed procedures described. Goodwill: (US$799; 2020: The total carrying value of goodwill as at 31 March 2021 is US$414m) US$5,261m. Of this, US$4,462m relates to CGUs where there Our audit procedures included: Impairment: (US$53m; 2020: is significant headroom between the value-in-use and the Assessing methodology: Assessing whether the principles US$nil) carrying value of net assets. The remaining balance of and integrity of the cash flow model is in accordance with the Financial statements Refer to the Audit Committee US$799m relates to the EMEA and Asia Pacific CGUs. The relevant accounting standards; report within the Corporate estimated recoverable amount of the EMEA CGU shows Challenging growth assumptions: Challenging the Group’s Governance Report and the relatively low headroom and an impairment to goodwill of assumptions and obtaining support, such as board-approved Group Financial Statements $53m in the Asia Pacific CGU has been recognised in the strategy plans, as well as corroborating long term growth notes 4, 5 and 20. year. The carrying values of both CGUs are sensitive to rates to external sources; changes in key assumptions, principally relating to short and long-term revenue growth, future profitability and discount Our sector experience: Critically assessing the rates, which could have a material impact on the carrying appropriateness of the discount rate applied through the use value of the associated goodwill. of our valuations specialists; The effect of these matters is that, as part of our risk Sensitivity analysis: Performing both breakeven and assessment, we determined that the value in use of the plausible scenario sensitivity analysis on the key EMEA and Asia Pacific goodwill has a high degree of assumptions noted above to identify sensitivity to potential estimation uncertainty, with a potential range of reasonable impairments; outcomes greater than our materiality for the Financial Historical comparisons: Evaluating the track record of Statements as a whole. The Financial Statements (note 20) historical assumptions used against actual results achieved; disclose the sensitivity estimated by the Group. and Assessing transparency: Assessing whether the Group’s disclosures about the sensitivity of the outcome of the impairment assessment to a reasonably possible change in key assumptions reflected the risks inherent in the valuation of goodwill. Our results As a result of our work, we found the carrying value of goodwill for the EMEA and Asia Pacific CGUs to be acceptable (2020 result: acceptable). 142 Experian plc Financial statements

Independent auditor’s report Continued

2 Key audit matters: our assessment of risks of material misstatement continued The risk Our response Recoverability of Parent Low risk, high value We performed the tests below rather than seeking to rely on Company’s investment in and The carrying amount of the Parent Company’s investments any of the Group's controls because the nature of the balance amounts due from subsidiaries in, and amounts due from, subsidiaries represents 91% is such that we would expect to obtain audit evidence primarily (Investment in subsidiaries – (2020: 91%) and 9% (2020: 9%) of the Parent Company’s total through the detailed procedures described. US$17,919.5m, assets respectively. Their recoverability is not at a high risk Our audit procedures included: (2020: US$17,413.2m) of significant misstatement or subject to significant Tests of detail: Comparing the carrying amount of 100% of Amounts owed by subsidiary judgment. However, due to their materiality in the context of investments and amounts due from subsidiaries, with the undertakings – US$1,759.5m, the Parent Company Financial Statements, this is considered relevant subsidiaries’ draft balance sheet to identify whether (2020: US$1,728.0m) to be the area that had the greatest effect on our overall their net assets, being an approximation of the minimum Refer to the Parent Company Parent Company audit. recoverable amount of the related investments and Financial Statements notes amounts owed by subsidiary undertakings, were in excess L and N. of their carrying amount, and assessing whether those subsidiaries have historically been profit-making; Our results We found the conclusion that there is no impairment of the carrying amounts of the Parent company’s investments in and amounts due from subsidiaries to be acceptable (2020: acceptable).

3 Our application of materiality and an overview of the The three reporting components and work performed by the Group audit scope of our audit team accounted for the percentages illustrated opposite. The remaining 11% (2020:11%) of total Group revenue, 7% (2020:19%) Materiality of total profits and losses that make up Group profit before tax (continuing Materiality for the Group Financial Statements as a whole was set at operations) and 11% (2020:11%) of total Group assets is represented by US$48m (2020: US$47m), determined with reference to a benchmark of 191 (2020:184 ) reporting components, none of which individually consolidated Group profit before tax on continuing operations, of which it represented more than 2% (2020:3% ) of any of total Group revenue, represents 4.5% (2020: 5.0%). Group profit before tax (continuing operations) or total Group assets. Materiality for the Parent Company Financial Statements as a whole For these residual components, we performed analysis at an aggregated was set at US$25m (2020: US$25m), determined with reference to a Group level to re-examine our assessment that there were no significant benchmark of company total assets, of which it represents 0.1% risks of material misstatement within these. (2020: 0.1%). The Group audit team instructed component auditors as to the significant In line with our audit methodology, our procedures on individual account areas to be covered, including the relevant risks detailed above and the balances and disclosures were performed to a lower threshold, information to be reported back. performance materiality, so as to reduce to an acceptable level the risk The Group audit team approved the component materialities, which that individually immaterial misstatements in individual account balances ranged from US$9m to US$36m (2020: US$12m to US$42m) having add up to a material amount across the Financial Statements as a whole. regard to the mix of size and risk profile of the Group across the Performance materiality was set at 75% (2020: 75%) of materiality for the components. Financial Statements as a whole, which equates to US$36m The Group operates five shared service centres in the UK, the USA, (2020: US$35m) for the Group and US$19m (2020: US$19m) for the Malaysia, Costa Rica and Bulgaria, the outputs of which are included in Parent Company. We applied this percentage in our determination of the financial information of the reporting components they service and performance materiality because we did not identify any factors indicating therefore they are not separate reporting components. Each of the an elevated level of risk. service centres is subject to specified risk-focused audit procedures, We agreed to report to the Audit Committee any corrected or uncorrected predominantly the testing of transaction processing and review controls. identified misstatements exceeding US$2.4m (2020: US$2.3m), in addition Additional procedures are performed at certain reporting components to to other identified misstatements that warranted reporting on qualitative address the audit risks not covered by the work performed over the grounds. shared service centres. Our audit of the Group and Parent Company was undertaken to the Site visits to the USA, UK and Brazil components by the Group audit materiality level specified above, which has informed our identification team were unable to take place as a result of the COVID-19 pandemic. of significant risks of material misstatement and the associated audit Telephone and video conference meetings were held with these procedures performed in those areas as detailed above. component audit teams. At these meetings, the findings reported to the Group audit team were discussed in more detail, and any further Scoping work required by the Group audit team was then performed by the Of the Group’s 196 (2020: 189) reporting components, we subjected component auditors. three (2020: three) to full scope audits for Group purposes, performed by component auditors (KPMG member firms). Additionally, two reporting components were audited by the Group audit team, one of which was the Parent Company. Experian plc Annual Report 2021 143

3 Our application of materiality and an overview of the scope of our audit continued

Group profit before tax (continuing operations) Group materiality US$1,077m (2020: US$942m) US$48m (2020: US$47m) US$48m Whole Financial Statements materiality (2020: US$47m)

US$36m Range of materiality at three reporting components US$9m to US$36m (2020: US$12m to US$42m)

Profit before tax (continuing operations)

Group materiality US$2.4m Misstatements reported to the Audit Committee (2020: US$2.3m)

Total profits and losses that make up Group profit before tax Group revenue (continuing operations) Group total assets

11 7 11 11 11 19 89% 93% 89% (2020: 89%) (2020: 81%) (2020: 89%)

89 81 89 89 93 89 Financial statements Full scope for Group audit purposes 2021 Full scope for Group audit purposes 2020 Residual components

4 Going concern Our conclusions based on this work: The Directors have prepared the Financial Statements on the going we consider that the Directors’ use of the going concern basis of concern basis as they do not intend to liquidate the Group or the Company accounting in the preparation of the Financial Statements is or to cease their operations, and as they have concluded that the Group’s appropriate; and the Company’s financial position means that this is realistic. They we have not identified, and concur with the Directors’ assessment that have also concluded that there are no material uncertainties that could there is not, a material uncertainty related to events or conditions that, have cast significant doubt over their ability to continue as a going individually or collectively, may cast significant doubt on the Group’s or concern for at least a year from the date of approval of the Financial Company's ability to continue as a going concern for the going concern Statements (the going concern period). period; and We used our knowledge of the Group, its industry, and the general we have nothing material to add or draw attention to in relation to the economic environment to identify the inherent risks to its business model Directors’ statement in note 2 to the Financial Statements on the use of and analysed how those risks might affect the Group’s and Company’s the going concern basis of accounting with no material uncertainties financial resources or ability to continue operations over the going that may cast significant doubt over the Group and Company’s use of concern period. The risk that we considered most likely to adversely affect that basis for the going concern period, and we found the going concern the Group’s and Company’s available financial resources and metrics disclosure in note 2 to be acceptable. relevant to debt covenants over this period is the loss or inappropriate use However, as we cannot predict all future events or conditions and as of data or systems, leading to serious reputational and brand damage, subsequent events may result in outcomes that are inconsistent with legal penalties and class action litigation. judgments that were reasonable at the time they were made, the above We considered whether these risks could plausibly affect the liquidity or conclusions are not a guarantee that the Group or the Company will covenant compliance in the going concern period by assessing the degree continue in operation. of downside assumption that, individually and collectively, could result in a liquidity issue, taking into account the Group’s current and projected cash and facilities (a reverse stress test). We also assessed the completeness of the going concern disclosure. 144 Experian plc Financial statements

Independent auditor’s report Continued

5 Fraud and breaches of laws and regulations – ability full-scope component audit teams of relevant laws and regulations to detect identified at the Group level and a request for full scope component auditors to report to the Group audit team any instances of non- Identifying and responding to risks of material misstatement compliance with laws and regulations that could give rise to a material due to fraud misstatement in the Group Financial Statements. To identify risks of material misstatement due to fraud (fraud risks) we The potential effect of these laws and regulations on the Financial assessed events or conditions that could indicate an incentive or pressure Statements varies considerably. to commit fraud or provide an opportunity to commit fraud. Our risk First, the Group is subject to laws and regulations that directly affect the assessment procedures included: Financial Statements including financial reporting legislation (including Enquiring of Directors, the Audit Committee, Internal Audit and related companies legislation), distributable profits legislation as set out inspection of policy documentation as to the Group’s high-level policies by Companies (Jersey) Law 1991, taxation legislation and pension and procedures to prevent and detect fraud, including the internal audit legislation and we assessed the extent of compliance with these laws function, and the Group’s channel for “whistleblowing”, as well as and regulations as part of our procedures on the related financial whether they have knowledge of any actual, suspected or alleged fraud. statement items. Reading Board, Audit Committee, Remuneration Committee, Secondly, the Group is subject to many other laws and regulations where Nomination and Corporate Governance Committee minutes. the consequences of non-compliance could have a material effect on Considering remuneration incentive schemes and performance targets amounts or disclosures in the Financial Statements, for instance through for management and Directors including the targets for management the imposition of fines or litigation. We identified the following areas as remuneration linked to the Co-investment Plans and Performance those most likely to have such an effect: data protection legislation, health Share Plan share incentive plans. and safety, anti-bribery, employment law and certain aspects of company legislation recognising the financial and regulated nature of the Group’s Using analytical procedures to identify any unusual or unexpected activities. Auditing standards limit the required audit procedures to relationships. identify non-compliance with these laws and regulations to enquiry of the We communicated identified fraud risks throughout the audit team and Directors and other management and inspection of regulatory and legal remained alert to any indications of fraud throughout the audit. This correspondence, if any. Therefore, if a breach of operational regulations is included communication from the Group audit team to full scope not disclosed to us or evident from relevant correspondence, an audit will component audit teams of relevant fraud risks identified at the Group not detect that breach. level and request to full scope component audit teams to report to the Group audit team any instances of fraud that could give rise to a material Further detail in respect of the provisions for litigations, contingent misstatement in the Group Financial statements. liabilities and uncertain tax positions is set out in the key audit matter disclosures in section 2 of this report. As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk of fraudulent Context of the ability of the audit to detect fraud or breaches revenue recognition, in particular non-transactional revenue recorded in the wrong period, and the risk that Group and component management of law or regulation may make inappropriate accounting entries. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the We did not identify any additional fraud risks. Financial Statements, even though we have properly planned and We also performed procedures including: performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from Identifying journal entries to test for all full scope components and the events and transactions reflected in the Financial Statements, the less central entities based on risk criteria and comparing the identified likely the inherently limited procedures required by auditing standards entries to supporting documentation. These included those posted with would identify it. key descriptive words and those posted to seldom used accounts. In addition, as with any audit, there remained a higher risk of non- Assessing when non-transactional revenue was recognised in all full detection of fraud, as these may involve collusion, forgery, intentional scope components, particularly focusing on revenue recognised in the omissions, misrepresentations, or the override of internal controls. Our days before the year end date, and whether it was recognised in the audit procedures are designed to detect material misstatement. We are correct year. not responsible for preventing non-compliance or fraud and cannot be Identifying and responding to risks of material misstatement expected to detect non-compliance with all laws and regulations. due to non-compliance with laws and regulations 6 We have nothing to report on the other information in the We identified areas of laws and regulations that could reasonably be Annual Report expected to have a material effect on the Financial Statements from our The Directors are responsible for the other information presented in the general commercial and sector experience, and through discussion with Annual Report together with the Financial Statements. Our opinion on the the Directors (as required by auditing standards), and from inspection of Financial Statements does not cover the other information and, the Group’s regulatory and legal correspondence and discussed with the accordingly, we do not express an audit opinion or, except as explicitly Directors the policies and procedures regarding compliance with laws stated below, any form of assurance conclusion thereon. and regulations. Our responsibility is to read the other information and, in doing so, As the Group is regulated, our assessment of risks involved gaining an consider whether, based on our Financial Statements audit work, the understanding of the control environment including the entity’s information therein is materially misstated or inconsistent with the procedures for complying with regulatory requirements. Financial Statements or our audit knowledge. Based solely on that work We communicated identified laws and regulations throughout our team we have not identified material misstatements in the other information. and remained alert to any indications of non-compliance throughout the audit. This included communication from the Group audit team to Experian plc Annual Report 2021 145

6 We have nothing to report on the other information in the Corporate governance disclosures Annual Report continued We are required to perform procedures to identify whether there is a material inconsistency between the Directors’ corporate governance Report on Directors’ Remuneration disclosures and the Financial Statements and our audit knowledge. In addition to our audit of the Financial Statements, the Directors Based on those procedures, we have concluded that each of the have engaged us to audit the information in the Report on Directors’ following is materially consistent with the Financial Statements Remuneration that is described as having been audited, which the and our audit knowledge: Directors have decided to prepare as if the Company were required to comply with the requirements of Schedule 8 to The Large and the Directors’ statement that they consider that the Annual Report Medium-sized Companies and Groups (Accounts and Reports) and Financial Statements taken as a whole is fair, balanced and Regulations 2008 (S.I. 2008 No. 410) made under the UK understandable, and provides the information necessary for Companies Act 2006. shareholders to assess the Group’s position and performance, business model and strategy; In our opinion, the part of the Report on Directors’ Remuneration to be audited has been properly prepared in accordance with the UK the section of the Annual Report describing the work of the Audit Companies Act 2006, as if it applied to the Company. Committee, including the significant issues that the Audit Committee considered in relation to the Financial Statements, and how these Disclosures of emerging and principal risks and issues were addressed; and longer-term viability the section of the Annual Report that describes the review of the effectiveness of the Group’s risk management and internal control We are required to perform procedures to identify whether there is a systems. material inconsistency between the Directors’ disclosures in respect of emerging and principal risks and the Viability Statement, and the We are required to review the part of the Corporate Governance Financial Statements and our audit knowledge. Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code specified by the Listing Rules for our Based on those procedures, we have nothing material to add or draw review. We have nothing to report in this respect. attention to in relation to: the Directors’ confirmation within the Viability Statement on page 82 7 We have nothing to report on the other matters on which that they have carried out a robust assessment of the emerging and we are required to report by exception principal risks facing the Group, including those that would threaten its Under the Companies (Jersey) Law, 1991 and the terms of our business model, future performance, solvency and liquidity; engagement, we are required to report to you if, in our opinion: the Principal Risks disclosures describing these risks and how proper accounting records have not been kept by the Company; or emerging risks are identified, and explaining how they are being managed and mitigated; and proper returns adequate for our audit have not been received from Financial statements branches not visited by us; or the Directors’ explanation in the viability assessment of how they have assessed the prospects of the Group, over what period they have done the Company’s Financial Statements and the part of the Report on so and why they considered that period to be appropriate, and their Directors’ Remuneration which we were engaged to audit are not in statement as to whether they have a reasonable expectation that the agreement with the accounting records and returns; or Group will be able to continue in operation and meet its liabilities as we have not received all the information and explanations we they fall due over the period of their assessment, including any related require for our audit. disclosures drawing attention to any necessary qualifications or We have nothing to report in these respects. assumptions. We are also required to review the Viability Statement set out on page 82 8 Respective responsibilities under the Listing Rules. Based on the above procedures, we have concluded that the above disclosures are materially consistent with the Directors’ responsibilities Financial Statements and our audit knowledge. As explained more fully in their statement set out on page 137, the Our work is limited to assessing these matters in the context of only the Directors are responsible for: the preparation of Financial Statements knowledge acquired during our Financial Statements audit. As we cannot which give a true and fair view; such internal control as they determine is predict all future events or conditions and as subsequent events may necessary to enable the preparation of Financial Statements that are free result in outcomes that are inconsistent with judgments that were from material misstatement, whether due to fraud or error; assessing the reasonable at the time they were made, the absence of anything to report Group and Parent Company’s ability to continue as a going concern, on these statements is not a guarantee as to the Group’s and Company’s disclosing, as applicable, matters related to going concern; and using the longer-term viability. going concern basis of accounting unless they either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. 146 Experian plc Financial statements

Independent auditor’s report Continued

8 Respective responsibilities continued Auditor’s responsibilities Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

9 The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Company’s members, as a body, in accordance with Article 113A of the Companies (Jersey) Law 1991 and the terms of our engagement by the Company. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report, and the further matters we are required to state to them in accordance with the terms agreed with the Company, and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Bradshaw for and on behalf of KPMG LLP Chartered Accountants and Recognized Auditor 15 Canada Square, London E14 5GL United Kingdom 18 May 2021 Experian plc Annual Report 2021 147

Group income statement for the year ended 31 March 2021

2021 2020 Non- Non- Benchmark1 benchmark2 Total Benchmark1 benchmark2 Total Notes US$m US$m US$m US$m US$m US$m Revenue 8,9 5,372 — 5,372 5,179 — 5,179 Labour costs 11(a) (1,965) (30) (1,995) (1,864) (8) (1,872) Data and information technology costs (861) — (861) (753) — (753) Amortisation and depreciation charges 12 (453) (138) (591) (413) (124) (537) Marketing and customer acquisition costs (417) — (417) (378) — (378) Other operating charges (295) (150) (445) (392) (62) (454) Total operating expenses (3,991) (318) (4,309) (3,800) (194) (3,994) Profit on disposal of associate 14(b) — 120 120 — — — Operating profit/(loss) 1,381 (198) 1,183 1,379 (194) 1,185 Interest income 12 — 12 13 — 13 Finance expense (133) (6) (139) (145) (125) (270) Net finance costs 15 (121) (6) (127) (132) (125) (257) Share of post-tax profit of associates 5 16 21 8 6 14 Profit/(loss) before tax 9 1,265 (188) 1,077 1,255 (313) 942 Tax (charge)/credit 16 (328) 53 (275) (324) 61 (263) Profit/(loss) for the financial year from continuing operations 937 (135) 802 931 (252) 679 Loss for the financial year from discontinued operations 17 — — — — (2) (2) Profit/(loss) for the financial year 937 (135) 802 931 (254) 677

Attributable to: Owners of Experian plc 938 (135) 803 929 (254) 675 Non-controlling interests (1) — (1) 2 — 2 Profit/(loss) for the financial year 937 (135) 802 931 (254) 677

Total Benchmark EBIT1 9(a)(i) 1,386 1,387 Financial statements Notes US cents US cents US cents US cents US cents US cents Earnings/(loss) per share Basic 18(a) 103.1 (14.9) 88.2 103.0 (28.2) 74.8 Diluted 18(a) 102.3 (14.7) 87.6 102.1 (27.9) 74.2

Earnings/(loss) per share from continuing operations Basic 18(a) 103.1 (14.9) 88.2 103.0 (28.0) 75.0 Diluted 18(a) 102.3 (14.7) 87.6 102.1 (27.7) 74.4

Benchmark PBT per share1,3 139.0 139.1

Full-year dividend per share1 19 47.0 47.0

1 Total Benchmark EBIT, Benchmark PBT per share and Full-year dividend per share are non-GAAP measures, defined in note 6. 2 The loss before tax for non-benchmark items of US$188m (2020: US$313m) comprises a net credit for Exceptional items of US$35m (2020: charge of US$35m) and net charges for other adjustments made to derive Benchmark PBT of US$223m (2020: US$278m). Further information is given in note 14. 3 Benchmark PBT per share is calculated by dividing Benchmark PBT of US$1,265m (2020: US$1,255m) by the weighted average number of ordinary shares of 910 million (2020: 902 million). The amount is stated in US cents per share. 148 Experian plc Financial statements

Group statement of comprehensive income for the year ended 31 March 2021

2021 2020 US$m US$m Profit for the financial year 802 677 Other comprehensive income Items that will not be reclassified to profit or loss: Remeasurement of post-employment benefit assets and obligations (note 35(b)) 2 26 Changes in the fair value of investments revalued through OCI 11 (6) Deferred tax charge (1) (5) Items that will not be reclassified to profit or loss 12 15 Items that are or may be reclassified subsequently to profit or loss: Currency translation gains/(losses) 70 (313) Fair value gain on cash flow hedge 35 — Hedging gain reclassified to profit or loss (33) — Items that are or may be reclassified subsequently to profit or loss 72 (313)

Other comprehensive income for the financial year1 84 (298) Total comprehensive income for the financial year 886 379

Attributable to: Owners of Experian plc 881 378 Non-controlling interests 5 1 Total comprehensive income for the financial year 886 379

1 Amounts reported within Other comprehensive income (OCI) are in respect of continuing operations and, except as reported for post-employment benefit assets and obligations, there is no associated tax. Currency translation items, not reclassified to profit or loss, are recognised in the translation reserve within other reserves and in non-controlling interests. Other items within Other comprehensive income are recognised in retained earnings. Experian plc Annual Report 2021 149

Group balance sheet at 31 March 2021

2021 2020 Notes US$m US$m Non-current assets Goodwill 20 5,261 4,543 Other intangible assets 21 1,966 1,583 Property, plant and equipment 22 469 502 Investments in associates 23 128 123 Deferred tax assets 36(a) 86 107 Post-employment benefit assets 35(a) 102 83 Trade and other receivables 24(a) 160 164 Financial assets revalued through OCI 30(a) 245 171 Other financial assets 30(b) 223 223 8,640 7,499

Current assets Trade and other receivables 24(a) 1,197 1,078 Current tax assets 36(b) 34 28 Other financial assets 30(b) 20 17 Cash and cash equivalents - excluding bank overdrafts 25(a) 180 277 1,431 1,400

Current liabilities Trade and other payables 26(a) (1,543) (1,430) Borrowings 27(a) (655) (498) Current tax liabilities 36(b) (176) (225) Provisions 37 (27) (48) Other financial liabilities 30(b) (15) (23) (2,416) (2,224) Net current liabilities (985) (824) Total assets less current liabilities 7,655 6,675 Financial statements

Non-current liabilities Trade and other payables 26(a) (159) (121) Borrowings 27(a) (3,682) (3,916) Deferred tax liabilities 36(a) (361) (202) Post-employment benefit obligations 35(a) (55) (48) Other financial liabilities 30(b) (279) (107) (4,536) (4,394) Net assets 3,119 2,281

Equity Called-up share capital 38 96 96 Share premium account 38 1,756 1,574 Retained earnings 39(a) 19,207 18,826 Other reserves 39(b) (17,978) (18,221) Attributable to owners of Experian plc 3,081 2,275 Non-controlling interests 38 6 Total equity 3,119 2,281

These financial statements were approved by the Board on 18 May 2021 and were signed on its behalf by:

Kerry Williams Director 150 Experian plc Financial statements

Group statement of changes in equity for the year ended 31 March 2021

Called-up Share share premium Retained Other Attributable Non- capital account earnings reserves to owners of controlling Total (Note 38) (Note 38) (Note 39) (Note 39) Experian plc interests equity US$m US$m US$m US$m US$m US$m US$m At 1 April 2020 96 1,574 18,826 (18,221) 2,275 6 2,281 Comprehensive income: Profit for the financial year — — 803 — 803 (1) 802 Other comprehensive income for the financial year — — 12 66 78 6 84 Total comprehensive income for the financial year — — 815 66 881 5 886 Transactions with owners: Employee share incentive plans: – value of employee services — — 106 — 106 — 106 – shares issued on vesting — 19 — — 19 — 19 – other vesting of awards and exercises of share options — — (75) 87 12 — 12 – related tax credit — — 2 — 2 — 2 – other payments — — (6) — (6) — (6) Shares delivered as consideration for acquisition — 163 — 90 253 — 253 Non-controlling interests arising on business combinations — — (34) — (34) 24 (10) Recognition of non-controlling interests on acquisition — — — — — 4 4 Dividends paid — — (427) — (427) (1) (428) Transactions with owners — 182 (434) 177 (75) 27 (48) At 31 March 2021 96 1,756 19,207 (17,978) 3,081 38 3,119

Called-up Share share premium Retained Other Attributable Non- capital account earnings reserves to owners of controlling Total (Note 38) (Note 38) (Note 39) (Note 39) Experian plc interests equity US$m US$m US$m US$m US$m US$m US$m At 1 April 2019 96 1,559 18,718 (17,893) 2,480 14 2,494 Comprehensive income: Profit for the financial year — — 675 — 675 2 677 Other comprehensive income for the financial year — — 15 (312) (297) (1) (298) Total comprehensive income for the financial year — — 690 (312) 378 1 379 Transactions with owners: Employee share incentive plans: – value of employee services — — 83 — 83 — 83 – shares issued on vesting — 15 — — 15 — 15 – purchase of shares by employee trusts — — — (92) (92) — (92) – other vesting of awards and exercises of share options — — (64) 76 12 — 12 – related tax credit — — 5 — 5 — 5 – other payments — — (5) — (5) — (5) Purchase and cancellation of own shares — — (112) — (112) — (112) Transactions in respect of non-controlling interests — — (65) — (65) (7) (72) Dividends paid — — (424) — (424) (2) (426) Transactions with owners — 15 (582) (16) (583) (9) (592) At 31 March 2020 96 1,574 18,826 (18,221) 2,275 6 2,281 Experian plc Annual Report 2021 151

Group cash flow statement for the year ended 31 March 2021

2021 2020 Notes US$m US$m Cash flows from operating activities Cash generated from operations 40(a) 1,822 1,694 Interest paid (119) (157) Interest received 4 5 Dividends received from associates 17 6 Tax paid (236) (286) Net cash inflow from operating activities – continuing operations 1,488 1,262 Net cash outflow from operating activities – discontinued operations 17 — (6) Net cash inflow from operating activities 1,488 1,256

Cash flows from investing activities Purchase of other intangible assets 40(c) (374) (403) Purchase of property, plant and equipment (48) (84) Sale of property, plant and equipment 1 5 Purchase of other financial assets (31) (95) Sale of other financial assets 24 — Acquisition of subsidiaries, net of cash acquired 40(d) (526) (600) Disposal of investment in associate 14(b), 23 127 — Net cash flows used in investing activities (827) (1,177)

Cash flows from financing activities Cash inflow in respect of shares issued 40(e) 19 15 Cash outflow in respect of share purchases 40(e) — (203) Other payments on vesting of share awards (6) (5) Transactions in respect of non-controlling interests 40(d) (10) (67) New borrowings 1,011 1,519 Repayment of borrowings (1,337) (553) Payment of lease liabilities (56) (55)

Net receipts/(payments) for cross-currency swaps and foreign exchange contracts 54 (169) Financial statements Net receipts from equity swaps 6 5 Dividends paid (428) (426) Net cash flows (used in)/from financing activities (747) 61

Net (decrease)/increase in cash and cash equivalents (86) 140 Cash and cash equivalents at 1 April 272 146 Exchange movements on cash and cash equivalents (16) (14) Cash and cash equivalents at 31 March 40(f) 170 272 152 Experian plc Financial statements

Notes to the Group financial statements for the year ended 31 March 2021

1. Corporate information 3. Recent accounting developments Experian plc (the Company) is the ultimate parent company of the There have been no accounting standards, amendments or Experian group of companies (Experian or the Group). Experian is a interpretations effective for the first time in these financial statements leading global information services group. which have had a material impact on the financial statements. The Company is incorporated and registered in Jersey as a public Interest Rate Benchmark Reform - Phase 1, Amendments to IFRS 9 company limited by shares and is resident in Ireland. The Company’s ‘Financial Instruments’, IAS 39 ‘Financial Instruments: Recognition and registered office is at 22 Grenville Street, St Helier, Jersey, JE4 8PX, Measurement’ and IFRS 7 ‘Financial Instruments: Disclosures’ provide Channel Islands. The Company’s ordinary shares are traded on the relief from the discontinuation of hedge accounting as a result of London Stock Exchange’s Regulated Market and have a Premium Listing. interbank offered rate (IBOR) reform. There has been no change in this information since the Annual Report for Interest Rate Benchmark Reform - Phase 2, Amendments to IFRS 9, IAS the year ended 31 March 2020. 39 and IFRS 7 is effective for Experian from FY22. By applying the practical expedient in IFRS 9, the Group does not expect to be required to 2. Basis of preparation discontinue its hedging relationships as a result of changes in reference rates due to IBOR reform. The Group financial statements are: There are no other new standards, amendments to existing standards, or prepared in accordance with the Companies (Jersey) Law 1991 and interpretations that are not yet effective, that are expected to have a International Financial Reporting Standards (IFRS or IFRSs) as adopted material impact on the Group’s financial results. Accounting for use in the European Union (the EU) and IFRS Interpretations developments are routinely reviewed by the Group and its financial Committee interpretations (together EU-IFRS). The financial statements reporting systems are adapted as appropriate. also comply with IFRS as issued by the International Accounting Standards Board (IASB). EU-IFRS differs in certain respects from IFRS 4. Significant accounting policies as issued by the IASB, however, the differences have no material impact for the periods presented; The significant accounting policies applied are summarised below. They have been applied consistently to both years presented. The explanations prepared on the going concern basis and under the historical cost of these policies focus on areas where judgment is applied or which are convention, as modified for the revaluation of certain financial assets particularly important in the financial statements. For ease of reference, and financial liabilities; the content within this note is arranged as follows: presented in US dollars, the most representative currency of the sections (a) to (d) – content that applies generally to the preparation of Group’s operations, and generally rounded to the nearest million; these financial statements; prepared using the principal exchange rates set out in note 10; and sections (e) to (p) – balance sheet policies, to be read in conjunction with designed to voluntarily include disclosures in line with those parts of specific notes as indicated; the UK Companies Act 2006 applicable to companies reporting under sections (q) to (x) – income statement policies, to be read in conjunction IFRS. with specific notes as indicated; and The Company’s own financial statements are prepared under UK section (y) – the policy and presentation principles adopted for disclosing accounting standards in accordance with FRS 101 ‘Reduced Disclosure segment information, in accordance with IFRS 8 ‘Operating Segments’. Framework’. There has been no change in the basis of preparation of the Group (a) Basis of consolidation financial statements since the Annual Report for the year ended 31 March The Group financial statements incorporate the financial statements of 2020. the Company and its subsidiary undertakings. The use of critical accounting estimates and management judgment is Subsidiaries required in applying the accounting policies. Areas involving a higher Subsidiaries are fully consolidated from the date on which control is degree of judgment or complexity, or where assumptions and estimates transferred to the Group and cease to be consolidated from the date that are significant to the Group financial statements, are highlighted in note 5. the Group no longer has control. All business combinations are accounted for using the acquisition method. Going concern Intra-Group transactions, balances and unrealised gains on transactions In adopting the going concern basis for preparing these financial between Group companies are eliminated on consolidation. Unrealised statements, the directors have considered the business activities, the losses are also eliminated unless the transaction provides evidence of an principal risks and uncertainties and the other matters discussed in impairment of the asset transferred. connection with the Viability statement. Accounting policies of subsidiaries and segments are consistent with the At 31 March 2021, the Group had undrawn committed bank borrowing policies adopted by the Group for the purposes of the Group’s facilities of US$2.7bn which have an average remaining tenor of four consolidation. The Group financial statements incorporate the financial years. statements of the Company and its subsidiary undertakings for the year The directors believe that the Group is well placed to manage its financing ended 31 March 2021. A full list of subsidiary undertakings is given in note and other business risks satisfactorily, and have a reasonable expectation S to the Company financial statements. that the Group will have adequate resources to continue in operational Associates existence for at least 12 months from the date of signing these financial Interests in associates are accounted for using the equity method. They statements. The directors therefore consider it appropriate to adopt the are initially recognised at cost, which includes transaction costs. going concern basis of accounting in preparing the financial statements. Subsequent to initial recognition, the Group financial statements include In reaching this conclusion, the directors noted the Group’s strong cash the Group’s share of the profit or loss and other comprehensive income of performance in the year. equity-accounted investees, until the date on which significant influence ceases. Gains or losses on disposal are recognised within operating profit. Experian plc Annual Report 2021 153

4. Significant accounting policies continued (c) Fair value estimation Non-controlling interests The fair values of derivative financial instruments and other financial The non-controlling interests in the Group balance sheet represent the assets and liabilities are determined by using market data and share of net assets of subsidiary undertakings held outside the Group. The established estimation techniques such as discounted cash flow and movement in the year comprises the profit attributable to such interests option valuation models. The fair value of foreign exchange contracts is together with any dividends paid, movements in respect of corporate based on a comparison of the contractual and year-end exchange rates. transactions and related exchange differences. The fair values of other derivative financial instruments are estimated by discounting the future cash flows to net present values, using appropriate The Group treats transactions with non-controlling interests that do not market rates prevailing at the year-end. result in a loss of control as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any (d) Impairment of non-financial assets consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is recorded in equity. Gains or losses on Assets that are not subject to amortisation or depreciation are tested disposals to non-controlling interests are also recorded in equity. annually for impairment. Assets that are subject to amortisation or depreciation are reviewed for impairment when there is an indication that Where put option agreements are in place in respect of shares held by the carrying amount may not be recoverable. An impairment charge is non-controlling shareholders, the liability is stated at the present value of recognised for the amount by which an asset’s carrying amount exceeds its the expected future payments. Such liabilities are shown as financial recoverable amount, which is the higher of an asset’s fair value less costs of liabilities in the Group balance sheet. The change in the value of such disposal, and value-in-use. For the purposes of assessing impairment, options in the year is recognised in the Group income statement within net assets are grouped into cash generating units (CGUs), determined by the finance costs, while any change in that value attributable to exchange rate lowest levels for which there are separately identifiable cash flows. movements is recognised directly in Other comprehensive income (OCI). Where put option agreements are in place the Group adopts the (e) Goodwill (note 20) ‘anticipated acquisition’ approach, recording the other side of the put Goodwill is stated at cost less any accumulated impairment, where cost is liability against goodwill, with no subsequent profits attributed to the excess of the fair value of the consideration payable for an acquisition non-controlling interests. over the fair value at the date of acquisition of the Group’s share of identifiable net assets of a subsidiary or associate acquired. Fair values (b) Foreign currency translation are attributed to the identifiable assets, liabilities and contingent liabilities Transactions and balances that existed at the date of acquisition, reflecting their condition at that Transactions in foreign currencies are recorded in the functional currency date. Adjustments are made where necessary to align the accounting of the relevant Group undertaking at the exchange rate prevailing on the policies of acquired businesses with those of the Group. Goodwill is not date of the transaction. At each balance sheet date, monetary assets and amortised but is tested annually for impairment, or more frequently if liabilities denominated in foreign currencies are retranslated at the there is an indication that it may be impaired. An impairment charge is Financial statements exchange rate prevailing at the balance sheet date. Translation differences recognised in the Group income statement for any amount by which the on monetary items are taken to the Group income statement except when carrying value of the goodwill exceeds the recoverable amount. recognised in OCI, as qualifying net investment hedges or cash flow Goodwill is allocated to CGUs and monitored for internal management hedges. Translation differences on non-monetary financial assets revalued purposes by operating segment. The allocation is made to those CGUs or through OCI are reported as part of the fair value gains or losses in OCI. groups of CGUs that are expected to benefit from the business Group undertakings combination in which the goodwill arose. The results and financial position of Group undertakings whose functional Gains and losses on the disposal of an undertaking take account of the currencies are not the US dollar are translated into US dollars as follows: carrying amount of goodwill relating to the undertaking sold, allocated Income and expenses are generally translated at the average exchange where necessary on the basis of relative fair value. rate for the year. Where this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, (f) Other intangible assets (note 21) income and expenses are translated at the rates on the dates of the Acquisition intangibles transactions. Intangible assets acquired as part of a business combination are Assets and liabilities are translated at the closing exchange rate on the capitalised on acquisition at fair value and separately from goodwill, if balance sheet date. those assets are identifiable (separable or arising from legal rights). Such assets are referred to as acquisition intangibles in these financial All resulting exchange differences are recognised in OCI and as a statements. Amortisation is charged on a straight-line basis as follows: separate component of equity. Customer and other relationships – over three to 18 years, based on On consolidation, exchange differences arising from the translation of the management’s estimates of the average lives of such relationships, and net investment in Group undertakings whose functional currencies are reflecting their long-term nature. not the US dollar, and of borrowings and other currency instruments designated as hedges of such investments, are recognised in OCI to the Acquired software development – over three to eight years, based on extent that such hedges are effective. Tax attributable to those exchange the asset’s expected life. differences is taken directly to OCI. When such undertakings are sold, Marketing-related assets (trademarks and licences) – over their these exchange differences are recognised in the Group income contractual lives, up to a maximum of 20 years. statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of such undertakings are treated Marketing-related assets (trade names) – over three to 14 years, based as assets and liabilities of the entities and are translated into US dollars at on management’s expected retention of trade names within the the closing exchange rate. business. 154 Experian plc Financial statements

Notes to the Group financial statements continued

4. Significant accounting policies continued We apply the IFRS 9 simplified lifetime expected credit loss approach. Other intangibles Expected credit losses are determined using a combination of historical Other intangibles are capitalised at cost. Certain costs incurred in the experience and forward-looking information. Impairment losses or credits developmental phase of an internal project are capitalised provided that a in respect of trade receivables and contract assets are recognised in the number of criteria are satisfied. These include the technical feasibility of Group income statement, within other operating charges. completing the asset so that it is available for use or sale, the availability of adequate resources to complete the development and to use or sell the (i) Cash and cash equivalents (note 25) asset, and how the asset will generate probable future economic benefit. Cash and cash equivalents include cash in hand, term and call deposits held with banks and other short-term, highly liquid investments with The cost of such assets with finite useful economic or contractual lives is original maturities of three months or less. Bank overdrafts are shown amortised on a straight-line basis over those lives. The carrying values within borrowings in current liabilities in the Group balance sheet. For the are reviewed for impairment when events or changes in circumstances purposes of the Group cash flow statement, cash and cash equivalents indicate that the carrying values may not be recoverable. If impaired, the are reported net of bank overdrafts. carrying values are written down to the higher of fair value less costs of disposal, and value-in-use which is determined by reference to projected future income streams using assumptions in respect of profitability and (j) Financial assets and liabilities (note 30) growth. Financial assets We classify our financial assets into the following measurement Further details on the capitalisation and amortisation policy for the key categories, with the classification determined on initial recognition and asset classifications within other intangibles are: dependent on the purpose for which such assets are acquired: Databases – capitalised databases, which comprise the data purchase those subsequently measured at fair value (either through OCI or and capture costs of internally developed databases, are amortised through profit or loss), and over three to seven years. those measured at amortised cost. Computer software (internal use) – computer software licences purchased for internal use are capitalised on the basis of the costs Directly attributable transaction costs are expensed where an asset is incurred to purchase and bring into use the specific software. These carried at ‘fair value through profit or loss’ (FVPL) and added to the fair costs are amortised over three to ten years. value of the asset otherwise. Computer software (internally generated) – costs directly associated Financial assets with embedded derivatives are considered in their with producing identifiable and unique software products controlled by entirety when determining whether their cash flows are solely a payment the Group, and that will generate economic benefits beyond one year, of principal and interest. are recognised as intangible assets. These costs are amortised over Debt instruments three to ten years. Measurement of debt instruments depends on the Group’s business Research expenditure, together with other costs associated with model for managing the asset and the cash flow characteristics of the developing or maintaining computer software programs or databases, is asset. There are three measurement categories into which the Group recognised in the Group income statement as incurred. classifies debt instruments: Amortised cost: Assets that are held for collection of contractual cash (g) Property, plant and equipment (note 22) flows where those cash flows are solely repayments of principal and Purchased items of property, plant and equipment are held at cost less interest are measured at amortised cost. Interest income from these accumulated depreciation and any impairment in value. Cost includes the financial assets is recognised using the effective interest method. Any original purchase price of the asset and amounts attributable to bringing impairment or gain or loss on derecognition is recognised directly in the asset to its working condition for its intended use. the Group income statement. Depreciation is charged on a straight-line basis as follows: Fair value through Other comprehensive income (FVOCI): Assets that are held both for the collection of contractual cash flows and for their Freehold properties – over 50 years. sale, where the asset’s cash flows solely represent payments of Leasehold improvements to short leasehold properties – over the principal and interest, are measured at FVOCI. Movements in the remaining period of the lease. carrying amount are taken through OCI, however recognition of impairment gains or losses, interest income and foreign exchange Plant and equipment – over three to ten years, according to the asset’s gains or losses are recognised in the Group income statement. estimated useful life. Technology-based assets are typically depreciated over three to five years, with other infrastructure assets depreciated FVPL: Assets that do not meet the criteria for amortised cost or FVOCI over five to ten years. are measured at FVPL. A gain or loss on a debt instrument that is subsequently measured at FVPL is recognised in the Group income (h) Trade and other receivables (note 24) statement and presented net within other gains or losses in the period Trade receivables and contract assets are initially recognised at fair value in which it arises. and subsequently measured at this value less loss allowances. Where the time value of money is material, receivables are then carried at amortised cost using the effective interest method, less loss allowances. Experian plc Annual Report 2021 155

4. Significant accounting policies continued We document the relationship between hedging instruments and hedged items, and our risk management objective and strategy for undertaking Equity instruments We measure all equity instruments at fair value. Where we have elected to hedge transactions, at the hedge inception. We also document our present fair value gains or losses on equity investments in OCI, there is no assessment of whether the derivatives used in hedging meet the hedge subsequent reclassification of fair value gains or losses to the Group effectiveness criteria set out in IFRS 9. This assessment is performed at income statement following the derecognition of the investment. every reporting date throughout the life of the hedge to confirm that the Dividends from such investments are normally recognised as other hedge continues to meet the hedge effectiveness criteria. Hedge income when the Group’s right to receive payments is established. accounting is discontinued when the hedging instrument expires, is sold, terminated or exercised, or no longer qualifies for hedge accounting. Changes in the fair value of financial assets at FVPL are recognised in other gains or losses in the Group income statement. Impairment losses, Amounts payable or receivable in respect of interest rate swaps, together and reversals of impairment losses, on equity investments measured at with the interest differentials reflected in foreign exchange contracts, are FVOCI are not reported separately from other changes in fair value. recognised in net finance costs over the period of the contract. Changes in the fair value of derivatives that are designated and qualify as Impairment The loss allowances for financial assets are based on assumptions about fair value hedging instruments are recognised in the Group income significant increases in credit risk and subsequent risk of default. We use statement, together with any changes in the fair value of the hedged asset judgment in making these assumptions and selecting the inputs to the or liability that are attributable to the hedged risk. The ineffective portion impairment calculation, based on the Group’s history, existing market of a fair value hedge is recognised in net finance costs in the Group conditions as well as forward-looking estimates at the end of each income statement. reporting period. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedging instruments is recognised in Financial liabilities Financial liabilities are measured subsequently at amortised cost using OCI, while any ineffective part is recognised in the Group income the effective interest method or at FVPL. Financial liabilities are classified statement. Amounts recorded in OCI are recycled to the Group income at FVPL when the financial liability is held for trading, it is a derivative or it statement in the same period in which the underlying foreign currency is designated at FVPL on initial recognition. Financial liabilities at FVPL are exposure affects the Group income statement. measured at fair value, with any net gains or losses arising on changes in Non-hedging derivatives fair value, including any interest expense, recognised in the Group income Changes in the fair value of derivative instruments used to manage statement. exposures, that are not part of a documented hedge relationship under Other financial liabilities are subsequently measured at amortised cost IFRS 9, are recognised immediately in the Group income statement. Cost using the effective interest method. Interest expense, foreign exchange and income amounts in respect of derivatives entered into in connection gains and losses and any gain or loss on derecognition are recognised in with social security obligations on employee share incentive plans, other than amounts of a financing nature, are charged or credited within labour the Group income statement. Financial statements costs. Other costs and changes in the fair value of such derivatives are The effective interest method is a method of calculating the amortised charged or credited within financing fair value remeasurements in the cost of a financial liability and of allocating interest expense over the Group income statement. relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments, including all fees that form an (k) Trade and other payables (note 26) integral part of the effective interest rate, transaction costs and other Trade payables and contract liabilities are recognised initially at fair value. premiums or discounts, through the expected life of the financial liability. Where the time value of money is material, payables and contract Derivatives used for hedging liabilities are then carried at amortised cost using the effective interest The Group uses derivative financial instruments to manage its exposures method. to fluctuations in foreign exchange rates, interest rates and certain obligations relating to share incentive plans, including social security (l) Borrowings (note 27) obligations. Instruments used include interest rate swaps, cross-currency Borrowings are recognised initially at fair value, net of any transaction swaps, foreign exchange contracts and equity swaps. These are costs incurred. Borrowings are subsequently stated at amortised cost, recognised as assets or liabilities as appropriate and are classified as except where they are hedged by an effective fair value hedge, in which non-current, unless they mature within one year of the balance sheet date. case the carrying value is adjusted to reflect the fair value movements Derivatives are initially recognised at their fair value on the date the associated with the hedged risk. contract is entered into, and are subsequently remeasured at their fair Borrowings are classified as non-current to the extent that the Group has value. The method of recognising the resulting gain or loss depends on an unconditional right to defer settlement of the liability for at least one whether the derivative is designated as a hedging instrument and, if so, year after the balance sheet date. the nature of the hedge relationship. The Group designates certain derivatives as either fair value hedges or cash flow hedges. Fair value hedges are hedges of the fair value of a recognised asset or liability. Cash flow hedges are hedges of highly probable future foreign currency cash flows. The Group does not currently enter into net investment hedges. 156 Experian plc Financial statements

Notes to the Group financial statements continued

4. Significant accounting policies continued Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are recognised immediately in the (m) Leases (note 29) Group statement of comprehensive income. The Group undertakes an assessment of whether a contract is or contains The pension cost recognised in the Group income statement comprises a lease at its inception. The assessment establishes whether the Group the cost of benefits accrued plus interest on the opening net defined obtains substantially all the economic benefits from the use of an asset benefit obligation. Service costs and financing income and expenses are and whether we have the right to direct its use. recognised separately in the Group income statement. Plan expenses are Low-value lease payments are recognised as an expense, on a deducted from the expected return on the plan assets over the year. straight-line basis over the lease term. For other leases we recognise Defined benefit pension arrangements – unfunded plans both a right-of-use asset and a lease liability at the commencement date Unfunded pension obligations are determined and accounted for in of a lease contract. accordance with the principles used in respect of the funded The right-of-use asset is initially measured at cost, comprising the initial arrangements. amount of the lease liability adjusted for payments made at or before the Defined contribution pension arrangements commencement date, plus initial direct costs and an estimate of the cost The assets of defined contribution plans are held separately in of any obligation to refurbish the asset or site, less lease incentives. independently administered funds. The pension cost recognised in the Subsequently, right-of-use assets are measured at cost less accumulated Group income statement represents the contributions payable by the depreciation and impairment losses and are adjusted for any Group to these funds, in respect of the year. remeasurement of the lease liability. Depreciation is calculated on a Post-retirement healthcare obligations straight-line basis over the shorter of the lease period or the estimated Obligations in respect of post-retirement healthcare plans are calculated useful life of the right-of-use asset, which is determined on a basis annually by independent qualified actuaries, using an actuarial consistent with purchased assets (note 4(g)). methodology similar to that for the funded defined benefit pension The lease term comprises the non-cancellable period of a lease, plus arrangements. periods covered by an extension option, if it is reasonably certain to be Actuarial gains and losses arising from experience adjustments, and exercised, and periods covered by a termination option if it is reasonably changes in actuarial assumptions, are recognised in the Group statement certain not to be exercised. of comprehensive income. The cost recognised in the Group income The lease liability is initially measured at the present value of lease statement comprises only interest on the obligations. payments that are outstanding at the commencement date, discounted at the interest rate implicit in the lease or if that rate cannot be easily (o) Own shares (note 39) determined the Group’s incremental borrowing rate. The Group has a number of equity-settled, share-based employee Lease payments comprise payments of fixed principal, less any lease incentive plans. In connection with these, shares in the Company are held incentives, variable elements linked to an index, guaranteed residuals or by The Experian plc Employee Share Trust and the Experian UK Approved buy-out options that are reasonably certain to be exercised. They include All-Employee Share Plan. The assets of these entities mainly comprise payments in respect of optional renewal periods where these are Experian plc shares, which are shown as a deduction from equity at cost. reasonably certain to be exercised or early termination payments where Shares in the Company purchased and held as treasury shares, in the lease term reflects such an option. connection with the above plans and any share purchase programme, are The lease liability is remeasured when there is a change in future lease also shown as a deduction from equity at cost. The par value of shares in payments arising from a change in an index or rate, if there is a change in the Company that are purchased and cancelled, in connection with any the Group’s estimate of the amount expected to be payable under a share purchase programme, is accounted for as a reduction in called-up residual value guarantee, or if the Group changes its assessment of share capital with any cost in excess of that amount being deducted from whether it will exercise a purchase, extension or termination option. retained earnings. When a lease liability is remeasured, a corresponding adjustment is made (p) Assets and liabilities classified as held-for-sale to the carrying amount of the right-of-use asset or is recognised in the Assets and liabilities are classified as held-for-sale when their carrying Group income statement if the asset is fully depreciated. amounts are to be recovered or settled principally through a sale The Group presents right-of-use assets within property, plant and transaction and a sale is considered highly probable. They are stated at equipment and lease obligations within the Group balance sheet. the lower of the carrying amount and fair value less costs to sell. No depreciation or amortisation is charged in respect of non-current assets (n) Post-employment benefit assets and obligations (note 35) classified as held-for-sale. Defined benefit pension arrangements – funded plans The post-employment benefit assets and obligations recognised in the (q) Revenue recognition (note 8) Group balance sheet in respect of funded plans comprise the fair value of Revenue is stated net of any sales taxes, rebates and discounts and plan assets of funded plans less the present value of the related defined reflects the amount of consideration we expect to receive in exchange for benefit obligation at that date. The defined benefit obligation is calculated the transfer of promised goods and services. annually by independent qualified actuaries, using the projected unit Total consideration from contracts with customers is allocated to the credit method. performance obligations identified based on their standalone selling price, The present value of the defined benefit obligation is determined by and is recognised when those performance obligations are satisfied and discounting the estimated future cash outflows, using market yields on the control of goods or services is transferred to the customer, either over high-quality corporate pound sterling bonds with maturity terms time or at a point in time. consistent with the estimated average term of the related pension liability. Experian plc Annual Report 2021 157

4. Significant accounting policies continued The provision of distinct standalone consultancy and professional The provision and processing of transactional data is distinguished services is distinguished between: between contracts that: –– Professional consultancy services where the performance obligation –– provide a service on a per unit basis; where the transfer to the is the provision of personnel. Customers simultaneously receive and customer of each completed unit is considered satisfaction of a consume the benefits of the service, and revenue is recognised over single performance obligation. Revenue is recognised on the transfer time, in line with hours provided; and of each unit; –– The provision of analytical models and analyses, where the –– provide a service to the customer over the contractual term, performance obligation is a deliverable, or a series of deliverables, normally between one and five years, where revenue is recognised and revenue is recognised on delivery when control is passed to the on the transfer of this service to customers. For the majority of customer. contracts this means revenue is spread evenly over the contract Sales are typically invoiced in the geographic area in which the customer term, as customers simultaneously receive and consume the is located. As a result, the geographic location of the invoicing undertaking benefits of the service; is used to attribute revenue to individual countries. –– require an enhanced service at the start, where revenue is Accrued income balances, which represent the right to consideration in recognised to reflect the upfront benefit the customer receives and exchange for goods or services that we have transferred to a customer, consumes. Revenue for such contracts is recognised proportionally are assessed as to whether they meet the definition of a contract asset: in line with the costs of providing the service. When the right to consideration is conditional on something other than Revenue from referral fees for credit products and white-label the passage of time, a balance is classified as a contract asset. This partnerships is recognised as transactional revenue. arises where there are further performance obligations to be satisfied Revenue from transactional batch data arrangements that include an as part of the contract with the customer and typically includes ongoing update service is apportioned across each delivery to the balances relating to software licensing contracts. customer and is recognised when the delivery is complete, and control When the right to consideration is conditional only on the passage of of the batch data passes to the customer. Performance obligations are time, the balance does not meet the definition of a contract asset and is determined based on the frequency of data refresh: one-off, quarterly, classified as an unbilled receivable. This typically arises where the monthly, or real-time. timing of the related billing cycle occurs in a period after the Subscription and membership fees for continuous access to a service performance obligation is satisfied. are recognised over the period to which they relate, usually 1, 12 or 24 Costs incurred prior to the satisfaction or partial satisfaction of a months. Customers simultaneously receive and consume the benefits performance obligation are first assessed to see if they are within the of the service; therefore, revenue is recognised evenly over the scope of other standards. Where they are not, certain costs are recognised

subscription or membership term. as an asset providing they relate directly to a contract (or an anticipated Financial statements Revenue for one-off credit reports is recognised when the report is contract), generate or enhance resources that will be used in satisfying (or delivered to the consumer. to continue to satisfy) performance obligations in the future and are expected to be recovered from the customer. Costs which meet this Software licence and implementation services are primarily accounted criteria are deferred as contract costs and these are amortised on a for as a single performance obligation, with revenue recognised when systematic basis consistent with the pattern of transfer of the related the combined offering is delivered to the customer. Contract terms goods or services. normally vary between one and five years. These services are distinguished between: Costs to obtain a contract predominantly comprise sales commissions costs. –– Experian-hosted solutions, where the customer has the right to access a software solution over a specified time period. Customers Costs to fulfil a contract predominantly comprise labour costs directly simultaneously receive and consume the benefits of the service and relating to the implementation services provided. revenue is spread evenly over the period that the service is available; Contract liabilities arise when we have an obligation to transfer future and goods or services to a customer for which we have received –– On-premise software licence arrangements, where the software consideration, or the amount is due, from the customer, and include both solution is installed in an environment controlled by the customer. deferred income balances and specific reserves. The arrangement represents a right to use licence and so the performance obligation is considered to be fulfilled on delivery (r) Operating charges completion, when control of the configured solution is passed to the Operating charges are reported by nature in the Group income statement, customer. Revenue is recognised at that point in time. reflecting the Group’s cost-management control structure. The delivery of support and maintenance agreements is generally Details of the types of charges within labour costs in respect of share considered to be a separate performance obligation to provide a incentive plans are set out in note 4(u). Those for post-employment technical support service including minor updates. Contract terms are benefits are set out in note 4(n). often aligned with licence terms. Customers simultaneously receive Details of the Group’s amortisation and depreciation policy are given in and consume the benefits of the service therefore revenue is spread notes 4(f), 4(g) and 4(m). The principles upon which impairment charges evenly over the term of the maintenance period. of tangible and intangible assets are recognised are set out in notes 4(d), 4(e) and 4(f). 158 Experian plc Financial statements

Notes to the Group financial statements continued

4. Significant accounting policies continued estimates. Market-based performance conditions are included in the fair value measurement but are not revised for actual performance. (s) Net finance costs (note 15) Incremental transaction costs which are directly attributable to the issue (v) Contingent consideration of debt are capitalised and amortised over the expected life of the The initially recorded cost of any acquisition includes a reasonable borrowing, using the effective interest method. All other borrowing costs estimate of the fair value of any contingent amounts expected to be are charged in the Group income statement in the year in which they are payable in the future. Any cost or benefit arising when such estimates are incurred. revised is recognised in the Group income statement (note 14). Amounts payable or receivable in respect of interest rate swaps are taken Where part or all of the amount of disposal consideration is contingent on to net finance costs over the periods of the contracts, together with the future events, the disposal proceeds initially recorded include a interest differentials reflected in foreign exchange contracts. reasonable estimate of the value of the contingent amounts expected to Details of the nature of movements in the fair value of derivatives which be receivable and payable in the future. The proceeds and profit or loss on are reported as financial fair value remeasurements are included in note disposal are adjusted when revised estimates are made, with 4(j). The change in the year in the present value of put option agreements, corresponding adjustments made to receivables and payables as in respect of shares held by non-controlling shareholders, is recognised appropriate, until the ultimate outcome is known and the related as a financing fair value remeasurement within net finance costs. consideration received.

(t) Tax (note 16) (w) Discontinued operations (note 17) The tax charge or credit for the year is recognised in the Group income A discontinued operation is a component of the Group’s business that statement, except for tax on items recognised in OCI or directly in equity. represents a separate geographic area of operation or a separate major line of business. Classification as a discontinued operation occurs upon Current tax is calculated on the basis of the tax laws substantively disposal or earlier, if the operation meets the criteria to be classified as enacted at the balance sheet date in the countries where the Group held-for-sale. Discontinued operations are presented in the Group income operates. Current tax assets and liabilities are offset where there is a statement as a separate line and are shown net of tax. legally enforceable right of offset. When an operation is classified as a discontinued operation, comparatives Uncertain tax positions are considered on an individual basis. Where in the Group income statement and the Group statement of management considers it probable that an additional outflow will result comprehensive income are re-presented as if the operation had been from any given position, a provision is made. Such provisions are discontinued from the start of the comparator year. measured using management’s best estimate of the most likely outcome. Further details are given in note 5. (x) Earnings per share (EPS) (note 18) Deferred tax is provided in full on temporary differences arising between Earnings per share are reported in accordance with IAS 33. the tax bases of assets and liabilities and their carrying amounts in the Group financial statements. Deferred tax is not recognised on taxable (y) Segment information policy and presentation principles temporary differences arising on the initial recognition of goodwill. (note 9) Deferred tax is not accounted for when it arises from the initial recognition of an asset or liability in a transaction, other than a business combination, We are organised into, and managed on a worldwide basis through, the that at the time of the transaction affects neither accounting nor taxable following five operating segments, which are based on geographic areas profit or loss. Deferred tax assets and liabilities are calculated at the tax and supported by central functions: rates that are expected to apply when the asset is realised or the liability North America settled, based on the tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where Latin America the Group operates. UK and Ireland Deferred tax assets are recognised in respect of tax losses carried Europe, Middle East and Africa (EMEA) and forward and other temporary differences, to the extent that it is probable that the related tax benefit will be realised through future taxable profits. Asia Pacific. Deferred tax is provided on temporary differences arising on investments The chief operating decision maker assesses the performance of these in subsidiaries and associates, except where the Group controls the operating segments on the basis of Benchmark EBIT, as defined in note 6. timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The ‘All other segments’ category required to be disclosed has been Deferred tax assets and liabilities are offset where there is a legally captioned as EMEA/Asia Pacific in these financial statements. This enforceable right to offset current tax assets and liabilities and where combines information in respect of the EMEA and Asia Pacific segments, they relate to the same tax authority. as neither of these operating segments is individually reportable, on the basis of their share of the Group’s revenue, reported profit or loss, and assets. (u) Share incentive plans (note 33) The fair value of share incentives granted in connection with the Group’s We separately present information equivalent to segment disclosures in equity-settled, share-based employee incentive plans is recognised as an respect of the costs of our central functions, under the caption ‘Central expense on a straight-line basis over the vesting period. Fair value is Activities’, as management believes that this information is helpful to measured using whichever of the Black-Scholes model, Monte Carlo users of the financial statements. Costs reported for Central Activities model or closing market price is most appropriate. The Group takes into include costs arising from finance, treasury and other global functions. account the best estimate of the number of awards and options expected to vest and revises such estimates at each balance sheet date. Non-market performance conditions are included in the vesting Experian plc Annual Report 2021 159

4. Significant accounting policies continued results for the year and the respective income tax and deferred tax assets Inter-segment transactions are entered into under the normal or provisions in the year in which such determination is made. The Group commercial terms and conditions that would be available to third parties. recognises deferred tax assets based on forecasts of future profits Such transactions do not have a material impact on the Group’s results. against which those assets may be utilised. Segment assets consist primarily of property, plant and equipment, Goodwill (note 20) intangible assets including goodwill, derivatives designated as hedges of The Group tests goodwill for impairment annually, or more frequently if future commercial transactions, contract assets and receivables. They there is an indication that it may be impaired. The recoverable amount of exclude tax assets, cash and cash equivalents, and derivatives designated each CGU is generally determined on the basis of value-in-use as hedges of borrowings. Segment liabilities comprise operating and calculations, which require the use of cash flow projections based on contract liabilities, including derivatives designated as hedges of future financial budgets, looking forward up to five years. Management commercial transactions. They exclude tax liabilities, borrowings and determines budgeted profit margin based on past performance and its related hedging derivatives. Net assets reported for Central Activities expectations for the market’s development. Cash flows are extrapolated comprise corporate head office assets and liabilities, including certain using estimated growth rates beyond a five-year period. The growth rates post-employment benefit assets and obligations, and derivative assets used do not exceed the long-term average growth rate for the CGU’s and liabilities. Capital expenditure comprises additions to property, plant markets. The discount rates used reflect the Group’s pre-tax weighted and equipment and intangible assets, other than additions through average cost of capital (WACC), as adjusted for region specific risks and business combinations or to right-of-use assets. other factors. Information required to be presented also includes analysis of the Group’s (b) Critical judgments revenues by groups of service lines. This is supplemented by voluntary In applying the Group’s accounting policies, management has made disclosure of the profitability of those groups of service lines. For ease of judgments that have a significant effect on the amounts recognised in the reference, we use the term ‘business segments’ when discussing the Group financial statements and the reported amounts of assets, liabilities, results of groups of service lines. Our two business segments, details of income and expenses. Actual results may differ from these estimates. which are given in the Strategic report section of this Annual Report, are: Estimates and underlying assumptions are reviewed on an ongoing basis. Business-to-Business Revisions to estimates are recognised prospectively. Consumer Services. The most significant of these judgments are in respect of intangible assets and contingencies: The North America, Latin America and the UK and Ireland operating segments derive revenues from both of the Group’s business segments. Intangible assets The EMEA and Asia Pacific segments currently do not derive revenue Certain costs incurred in the developmental phase of an internal project, from the Consumer Services business segment. which include the development of databases, internal use software and internally generated software, are capitalised as intangible assets if a

Reportable segment information for the full year provided to the chief Financial statements number of criteria are met. Management has made judgments and operating decision maker is set out in note 9(a). assumptions when assessing whether a project meets these criteria, and on measuring the costs and the economic life attributed to such projects. 5. Critical accounting estimates, assumptions and judgments On acquisition, specific intangible assets are identified and recognised (a) Critical accounting estimates and assumptions separately from goodwill and then amortised over their estimated useful In preparing these financial statements, management is required to make lives. These include items such as brand names and customer lists, to estimates and assumptions that affect the reported amount of revenues, which value is first attributed at the time of acquisition. The capitalisation expenses, assets, liabilities and the disclosure of contingent liabilities. The of these assets and the related amortisation charges are based on resulting accounting estimates, which are based on management’s best judgments about the value and economic life of such items. judgment at the date of these financial statements, will seldom equal the The economic lives of intangible assets are estimated at between three subsequent actual amounts. The estimates and assumptions that have a and ten years for internal projects and between two and 20 years for significant risk of causing a material adjustment to the carrying amounts acquisition intangibles. Amortisation methods, useful lives and residual of assets and liabilities within the next financial year are summarised values are reviewed at each reporting date and adjusted if appropriate. below. Revenue recognition is excluded from this summary on the grounds that the policy adopted in this area is sufficiently objective. Further details of the amounts of, and movements in, such assets are given in note 21. Tax (notes 16, 36 and 43(a)) The Group is subject to tax in numerous jurisdictions. The Group has a Contingencies number of open tax returns with various tax authorities with whom it is in In the case of pending and threatened litigation claims, management has active dialogue. Liabilities relating to these open and judgmental matters formed a judgment as to the likelihood of ultimate liability. No liability has are based on an assessment as to whether additional taxes will be due, been recognised where the likelihood of any loss arising is possible rather after taking into account external advice where appropriate. Significant than probable. judgment is required in determining the related assets or provisions, as there are transactions in the ordinary course of business and calculations for which the ultimate tax determination is uncertain. The Group recognises liabilities based on estimates of whether additional tax will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, the differences will affect the 160 Experian plc Financial statements

Notes to the Group financial statements continued

6. Use of non-GAAP measures in the Group financial (d) Exited business activities statements Exited business activities are businesses sold, closed or identified for As detailed below, the Group has identified and defined certain measures closure during a financial year. These are treated as exited business that it uses to understand and manage its performance. The measures activities for both revenue and Benchmark EBIT purposes. The results of are not defined under IFRS and they may not be directly comparable with exited business activities are disclosed separately with the results of the other companies’ adjusted performance measures. These non-GAAP prior period re-presented in the segmental analyses as appropriate. This measures are not intended to be a substitute for any IFRS measures of measure differs from the definition of discontinued operations in IFRS 5. performance but management has included them as they consider them to be key measures used within the business for assessing the underlying (e) Ongoing activities performance of the Group’s ongoing businesses. The results of businesses trading at 31 March 2021, which are not disclosed as exited business activities, are reported as ongoing activities. (a) Benchmark profit before tax (Benchmark PBT) (note 9(a)(i)) (f) Constant exchange rates Benchmark PBT is disclosed to indicate the Group’s underlying To highlight our organic performance, we discuss our results in terms of profitability. It is defined as profit before amortisation and impairment of growth at constant exchange rates, unless otherwise stated. This acquisition intangibles, impairment of goodwill, acquisition expenses, represents growth calculated after translating both years’ performance at adjustments to contingent consideration, Exceptional items, financing fair the prior year’s average exchange rates. value remeasurements, tax (and interest thereon) and discontinued operations. It includes the Group’s share of continuing associates’ (g) Total growth (note 9(a)(ii)) Benchmark post-tax results. This is the year-on-year change in the performance of our activities at An explanation of the basis on which we report Exceptional items is actual exchange rates. Total growth at constant exchange rates removes provided below. Other adjustments made to derive Benchmark PBT are the translational foreign exchange effects arising on the consolidation of explained as follows: our activities and comprises one of our measures of performance at constant exchange rates. Charges for the amortisation and impairment of acquisition intangibles are excluded from the calculation of Benchmark PBT because these charges are based on judgments about their value and economic life (h) Organic revenue growth (note 9(a)(ii)) and bear no relation to the Group’s underlying ongoing performance. This is the year-on-year change in the revenue of ongoing activities, Impairment of goodwill is similarly excluded from the calculation of translated at constant exchange rates, excluding acquisitions until the Benchmark PBT. first anniversary of their consolidation. Acquisition and disposal expenses (representing the incidental costs of acquisitions and disposals, one-time integration costs and other (i) Benchmark earnings and Total Benchmark earnings corporate transaction expenses) relating to successful, active or (note 18) aborted acquisitions and disposals are excluded from the definition of Benchmark earnings comprises Benchmark PBT less attributable tax and Benchmark PBT as they bear no relation to the Group’s underlying non-controlling interests. The attributable tax for this purpose excludes ongoing performance or to the performance of any acquired significant tax credits and charges arising in the year which, in view of businesses. Adjustments to contingent consideration are similarly their size or nature, are not comparable with previous years, together with excluded from the definition of Benchmark PBT. tax arising on Exceptional items and on other adjustments made to derive Benchmark PBT. Benchmark PBT less attributable tax is designated as Charges and credits for financing fair value remeasurements within finance expense in the Group income statement are excluded from the Total Benchmark earnings. definition of Benchmark PBT. These include retranslation of intra-Group funding, and that element of the Group’s derivatives that is ineligible for (j) Benchmark earnings per share (Benchmark EPS) (note 18) hedge accounting, together with gains and losses on put options in Benchmark EPS comprises Benchmark earnings divided by the weighted respect of acquisitions. Amounts recognised generally arise from average number of issued ordinary shares, as adjusted for own shares market movements and accordingly bear no direct relation to the held. Group’s underlying performance. (k) Benchmark PBT per share (b) Benchmark earnings before interest and tax (Benchmark Benchmark PBT per share comprises Benchmark PBT divided by the EBIT) and margin (Benchmark EBIT margin) (note 9(a)(i)) weighted average number of issued ordinary shares, as adjusted for own Benchmark EBIT is defined as Benchmark PBT before the net interest shares held. expense charged therein and accordingly excludes Exceptional items as defined below. Benchmark EBIT margin is Benchmark EBIT from ongoing (l) Benchmark tax charge and rate (note 16(b)(ii)) activities expressed as a percentage of revenue from ongoing activities. The Benchmark tax charge is the tax charge applicable to Benchmark PBT. It differs from the tax charge by tax attributable to Exceptional items (c) Benchmark earnings before interest, tax, depreciation and and other adjustments made to derive Benchmark PBT, and exceptional amortisation (Benchmark EBITDA) tax charges. A reconciliation is provided in note 16(b)(ii) to these financial Benchmark EBITDA is defined as Benchmark EBIT before the depreciation statements. The Benchmark effective rate of tax is calculated by dividing and amortisation charged therein (note 12). the Benchmark tax charge by Benchmark PBT. Experian plc Annual Report 2021 161

6. Use of non-GAAP measures in the Group financial Financial risks represent part of the Group’s risks in relation to its strategy statements continued and business objectives. There is a full discussion of the most significant risks in the Risk management section of this Annual Report. The Group’s (m) Exceptional items (note 14(a)) financial risk management focuses on the unpredictability of financial markets and seeks to minimise potentially adverse effects on the Group’s The separate reporting of Exceptional items gives an indication of the financial performance. The Group seeks to reduce its exposure to financial Group’s underlying performance. Exceptional items include those arising risks and uses derivative financial instruments to hedge certain risk from the profit or loss on disposal of businesses, closure costs of major exposures. Such derivative financial instruments are also used to manage business units, costs of significant restructuring programmes and other the Group’s borrowings so that amounts are held in currencies broadly in financially significant one-off items. All other restructuring costs are the same proportion as the Group’s main earnings. However, the Group charged against Benchmark EBIT, in the segments in which they are does not, nor does it currently intend to, borrow in the Brazilian real or the incurred. Colombian peso. (n) Full-year dividend per share (note 19) The Group also ensures surplus funds are prudently managed and Full-year dividend per share comprises the total of dividends per share controlled. announced in respect of the financial year. Foreign exchange risk The Group is exposed to foreign exchange risk from future commercial (o) Benchmark operating and Benchmark free cash flow transactions, recognised assets and liabilities and investments in, and Benchmark operating cash flow is Benchmark EBIT plus amortisation, loans between, Group undertakings with different functional currencies. depreciation and charges in respect of share-based incentive plans, less The Group manages such risk, primarily within undertakings whose capital expenditure net of disposal proceeds and adjusted for changes in functional currencies are the US dollar, by: working capital, principal lease payments and the Group’s share of the entering into forward foreign exchange contracts in the relevant Benchmark profit or loss retained in continuing associates. Benchmark currencies in respect of investments in entities with functional free cash flow is derived from Benchmark operating cash flow by currencies other than the US dollar, whose net assets are exposed to excluding net interest, tax paid in respect of continuing operations and foreign exchange translation risk; dividends paid to non-controlling interests. swapping the proceeds of certain bonds issued in pounds sterling and (p) Cash flow conversion euros into US dollars; Cash flow conversion is Benchmark operating cash flow expressed as a managing the liquidity of Group undertakings in the functional currency percentage of Benchmark EBIT. of those undertakings by using an in-house banking structure and hedging any remaining foreign currency exposures with forward (q) Net debt and Net funding (note 28) foreign exchange contracts; Financial statements Net debt is borrowings (and the fair value of derivatives hedging denominating internal loans in relevant currencies, to match the borrowings) excluding lease obligations and accrued interest, less cash currencies of assets and liabilities in entities with different functional and cash equivalents and other highly liquid bank deposits with original currencies; and maturities greater than three months. Net funding is borrowings (and the using forward foreign exchange contracts to hedge certain future fair value of the effective portion of derivatives hedging borrowings) commercial transactions. excluding lease obligations and accrued interest, less cash held in Group Treasury. The principal transaction exposures are to the pound sterling and the euro. An indication of the sensitivity to foreign exchange risk is given in (r) Return on capital employed (ROCE) (note 9(a)(iii)) note 10. ROCE is defined as Benchmark EBIT less tax at the Benchmark rate Interest rate risk divided by a three-point average of capital employed, in continuing The Group’s interest rate risk arises principally from components of its operations, over the year. Capital employed is net assets less Net debt that are at variable rates. non-controlling interests, further adjusted to add or deduct the net tax The Group has a policy of normally maintaining between 50% and 100% liability or asset and to add Net debt. of Net funding at rates that are fixed for more than six months. The Group manages its interest rate exposure by: 7. Financial risk management using fixed and floating rate borrowings, interest rate swaps and (a) Financial risk factors cross-currency interest rate swaps to adjust the balance between the two; and The Group’s activities expose it to a variety of financial risks. These are market risk, including foreign exchange risk and interest rate risk, credit mixing the duration of borrowings and interest rate swaps to smooth risk, and liquidity risk. These risks are unchanged from those reported in the impact of interest rate fluctuations. the 2020 Annual Report. The numeric disclosures in respect of financial Further information in respect of the Group’s net finance costs for the risks are included within later notes to the financial statements, to provide year and an indication of the sensitivity to interest rate risk is given in a more transparent link between financial risks and results. note 15. 162 Experian plc Financial statements

Notes to the Group financial statements continued

7. Financial risk management continued (b) Capital risk management Credit risk The Group’s definition and management of capital focuses on capital In the case of derivative financial instruments, deposits, contract assets employed: and trade receivables, the Group is exposed to credit risk from the The Group’s capital employed is reported in the net assets summary non-performance of contractual agreements by the contracted party. table set out in the Financial review and analysed by segment in note Credit risk is managed by: 9(a)(iii). only entering into contracts for derivative financial instruments and As part of its internal reporting processes, the Group monitors capital deposits with banks and financial institutions with strong credit ratings, employed by operating segment. within limits set for each organisation; and The Group’s objectives in managing capital are to: closely controlling dealing activity and regularly monitoring safeguard its ability to continue as a going concern, in order to provide counterparty positions. returns for shareholders and benefits for other stakeholders; and The credit risk on derivative financial instruments utilised and deposits maintain an optimal capital structure and cost of capital. held by the Group is therefore not considered to be significant. The Group does not anticipate that any losses will arise from non-performance by its The Group’s policy is to have: chosen counterparties. Further information on the Group’s derivative a prudent but efficient balance sheet; and financial instruments at the balance sheet dates is given in note 30 and that in respect of amounts recognised in the Group income statement is a target leverage ratio of 2.0 to 2.5 times Benchmark EBITDA, given in note 15. Further information on the Group’s cash and cash consistent with the intention to retain strong investment-grade credit equivalents at the balance sheet dates is given in note 25. ratings. To minimise credit risk for trade receivables, the Group has implemented To maintain or adjust its capital structure, the Group may: policies that require appropriate credit checks on potential clients before adjust the amount of dividends paid to shareholders; granting credit. The maximum credit risk in respect of such financial assets is their carrying value. Further information in respect of the return capital to shareholders; Group’s trade receivables is given in note 24. issue or purchase our own shares; or Debt investments sell assets to reduce Net debt. All of the Group’s debt investments at amortised cost and FVOCI are considered to have low credit risk; the loss allowance is therefore limited Dividend policy to 12 months’ expected losses. Management considers ‘low credit risk’ for The Group has a progressive dividend policy which aims to increase the listed bonds to be an investment-grade credit rating with at least one dividend over time broadly in line with the underlying growth in major rating agency. Other instruments are considered to be low credit Benchmark EPS. This aligns shareholder returns with the underlying risk when they have a low risk of default and the issuer has a high profitability of the Group. In determining the level of dividend in any one capacity to meet its contractual cash flow obligations in the near term. year, in accordance with the policy, the Board also considers a number of other factors, including the outlook for the Group, the opportunities for Financial assets at FVPL organic investment, the opportunities to make acquisitions and disposals, The Group is also exposed to credit risk in relation to debt investments the cash flow generated by the Group, and the level of dividend cover. that are measured at FVPL. The maximum exposure at the balance sheet Further detail on the distributable reserves of the Company can be found date is the carrying amount of these investments. in note K to the Company financial statements. Liquidity risk The Group manages liquidity risk by: issuing long-maturity bonds and notes; entering into long-term committed bank borrowing facilities, to ensure the Group has sufficient funds available for operations and planned growth; spreading the maturity dates of its debt; and monitoring rolling cash flow forecasts, to ensure the Group has adequate, unutilised committed bank borrowing facilities. Details of such facilities are given in note 27. A maturity analysis of contractual undiscounted future cash flows for financial liabilities is provided in note 32. Experian plc Annual Report 2021 163

8. Revenue (a) Disaggregation of revenue from contracts with customers Total North Latin UK and EMEA/ operating America America Ireland Asia Pacific segments Year ended 31 March 2021 US$m US$m US$m US$m US$m Revenue from external customers Data 1,761 457 361 287 2,866 Decisioning 694 92 220 178 1,184 Business-to-Business 2,455 549 581 465 4,050 Consumer Services 1,075 76 156 — 1,307 Total ongoing activities 3,530 625 737 465 5,357

Total North Latin UK and EMEA/ operating America America Ireland Asia Pacific segments Year ended 31 March 20201 US$m US$m US$m US$m US$m Revenue from external customers Data 1,642 578 367 213 2,800 Decisioning 679 114 227 214 1,234 Business-to-Business 2,321 692 594 427 4,034 Consumer Services 926 40 161 — 1,127 Total ongoing activities 3,247 732 755 427 5,161

1 Revenue for the year ended 31 March 2020 has been re-presented for the reclassification to exited business activities of certain B2B businesses and the reclassification of our Consumer Services business in Latin America to the Consumer Services business segment; previously our Consumer Services business in this region was not sufficiently material to be disclosed separately. Total revenue comprises revenue from ongoing activities as well as revenue from exited business activities and is reconciled in note 9. Revenue in respect of exited business activities of US$15m (2020: US$18m) comprised UK and Ireland Data revenue of US$12m (2020: US$14m) and EMEA/Asia Pacific Decisioning revenue of US$3m (2020: US$4m). Data is predominantly transactional revenue with a portion from licence fees. Financial statements Decisioning revenue is derived from: software and system sales, and includes recurring licence fees, consultancy and implementation fees, and transactional charges; credit score fees which are primarily transactional; and analytics income comprising a mix of consultancy and professional fees as well as transactional revenue. Consumer Services revenue primarily comprises monthly subscription and one-off fees, and referral fees for credit products and white-label partnerships. The timing of recognition of these revenue streams is discussed in note 4(q).

(b) Significant changes in contract balances Contract assets predominantly relate to software licence services, where revenue recognition for on-premise arrangements occurs as the solution is transferred to the customer, whereas the invoicing pattern is often annually over the contract period. Contract assets recognised during the year totalled US$62m (2020: US$107m). The contract asset balance for work completed but not invoiced on satisfaction of a performance obligation unwinds over the contract term. Contract assets are transferred to receivables when the right to consideration becomes unconditional, or conditional only on the passage of time. Contract assets reclassified to receivables during the year totalled US$79m (2020: US$58m). An impairment charge of US$4m (2020: US$nil) has been recognised against contract assets during the year. The majority of software licences are invoiced annually in advance. Where these licences relate to Experian-hosted solutions, revenue is recognised over the period that the service is available to the customer, creating a contract liability. Delivery services are generally invoiced during the delivery period, creating a contract liability for the consideration received in advance, until the delivery is complete. Where the delivery relates to Experian-hosted solutions, revenue is recognised over the period that the service is available to the customer, reducing the contract liability over time. Where the delivery relates to an on-premise solution, the contract liability is released on delivery completion. Support and maintenance agreements are often invoiced annually in advance, creating a contract liability, which is released over the term of the maintenance period as revenue is recognised. Revenue recognised in the year of US$352m (2020: US$370m) was included in the opening contract liability. Cash received in advance not recognised as revenue in the year was US$380m (2020: US$377m). The increase in contract liabilities resulting from business combinations during the year was US$8m (2020: US$7m). Foreign exchange accounts for US$8m and US$21m of the increase in contract asset and contract liability balances in the year respectively (2020: decrease of US$8m and US$23m). 164 Experian plc Financial statements

Notes to the Group financial statements continued

8. Revenue continued (c) Contract costs The carrying amount of assets recognised from costs to obtain and costs to fulfil contracts with customers at 31 March 2021 is US$25m and US$74m respectively (2020: US$28m and US$68m). Amortisation of contract costs in the year is US$66m (2020: US$74m) and recognised impairment losses totalled US$2m (2020: US$5m). Contract costs are amortised on a systematic basis consistent with the pattern of transfer of the related goods or services. A portfolio approach has been applied to calculate contract costs for contracts with similar characteristics, where the Group reasonably expects that the effects of applying a portfolio approach does not differ materially from calculating the amounts at an individual contract level.

(d) Transaction price allocated to remaining performance obligations The aggregate amount of the transaction price from non-cancellable contracts with customers with expected durations of 12 months or more, allocated to the performance obligations that are unsatisfied, or partially satisfied, at 31 March 2021 is US$5.0bn (2020: US$4.6bn). We expect to recognise approximately 42% (2020: 43%) of this value within one year, 28% (2020: 25%) within one to two years, 17% (2020: 15%) within two to three years and 13% (2020: 17%) thereafter. The aggregate amount of the transaction price allocated to unsatisfied, or partially satisfied, performance obligations which are transactional in nature includes estimates of variable consideration. These estimates are based on forecast transactional volumes and do not take into account all external market factors which may have an impact on the future revenue recognised from such contracts. A portfolio approach has been applied to calculate the aggregate amount of the transaction price allocated to the unsatisfied, or partially satisfied, performance obligations for contracts with similar characteristics, where the Group reasonably expects that the effects of applying a portfolio approach does not differ materially from calculating the amounts at an individual contract level. We apply the practical expedient in paragraph 121(a) of IFRS 15 and do not disclose information about remaining performance obligations that have original expected durations of one year or less. This excludes contracts across a number of business units which have revenue due to be recognised in the financial year ending 31 March 2022; it also excludes the majority of our direct-to-consumer arrangements.

9. Segment information (a) IFRS 8 disclosures (i) Income statement Total Total North Latin UK and EMEA/ operating Central continuing America America Ireland Asia Pacific segments Activities operations Year ended 31 March 2021 US$m US$m US$m US$m US$m US$m US$m Revenue from external customers Ongoing activities 3,530 625 737 465 5,357 — 5,357 Exited business activities — — 12 3 15 — 15 Total 3,530 625 749 468 5,372 — 5,372

Reconciliation from Benchmark EBIT to profit/(loss) before tax Benchmark EBIT Ongoing activities 1,201 172 122 (20) 1,475 (90) 1,385 Exited business activities — — (1) 2 1 — 1 Total 1,201 172 121 (18) 1,476 (90) 1,386 Net interest expense included in Benchmark PBT (note 15(b)) (5) (2) (1) (2) (10) (111) (121) Benchmark PBT 1,196 170 120 (20) 1,466 (201) 1,265 Exceptional items (note 14(a)) 112 (1) (63) (13) 35 — 35 Impairment of goodwill (note 20) — — — (53) (53) — (53) Amortisation of acquisition intangibles (note 21) (90) (14) (7) (27) (138) — (138) Acquisition and disposal expenses (16) (4) (1) (20) (41) — (41) Adjustment to the fair value of contingent consideration — — — (1) (1) — (1) Non-benchmark share of post-tax (loss)/profit of associates — — (3) — (3) 19 16 Interest on uncertain tax provisions — — — — — (11) (11) Financing fair value remeasurements (note 15(c)) — — — — — 5 5 Profit/(loss) before tax 1,202 151 46 (134) 1,265 (188) 1,077 Experian plc Annual Report 2021 165

9. Segment information continued (i) Income statement continued Total Total North Latin UK and EMEA/ operating Central continuing America America Ireland Asia Pacific segments Activities operations Year ended 31 March 20201 US$m US$m US$m US$m US$m US$m US$m Revenue from external customers Ongoing activities 3,247 732 755 427 5,161 — 5,161 Exited business activities — — 14 4 18 — 18 Total 3,247 732 769 431 5,179 — 5,179

Reconciliation from Benchmark EBIT to profit/(loss) before tax Benchmark EBIT Ongoing activities 1,093 220 173 12 1,498 (112) 1,386 Exited business activities — — (2) 3 1 — 1 Total 1,093 220 171 15 1,499 (112) 1,387 Net interest expense included in Benchmark PBT (note 15(b)) (5) (2) (1) (2) (10) (122) (132) Benchmark PBT 1,088 218 170 13 1,489 (234) 1,255 Exceptional items (note 14(a)) (35) — — — (35) — (35) Amortisation of acquisition intangibles (note 21) (85) (17) (8) (14) (124) — (124) Acquisition and disposal expenses (9) (2) (8) (20) (39) — (39) Adjustment to the fair value of contingent consideration (1) — 5 — 4 — 4 Non-benchmark share of post-tax profit of associates — — — — — 6 6 Interest on uncertain tax provisions — — — — — (14) (14) Financing fair value remeasurements (note 15(c)) — — — — — (111) (111) Profit/(loss) before tax 958 199 159 (21) 1,295 (353) 942

1 Revenue and Benchmark EBIT for the year ended 31 March 2020 have been re-presented for the reclassification to exited business activities of certain B2B businesses. Additional information by operating segment, including that on total and organic growth at constant exchange rates, is provided in the Strategic report. (ii) Reconciliation of revenue from ongoing activities Total Financial statements North Latin UK and EMEA/ ongoing America America Ireland Asia Pacific activities US$m US$m US$m US$m US$m Revenue for the year ended 31 March 20201 3,247 732 755 427 5,161 Adjustment to constant exchange rates — 1 (2) 1 — Revenue at constant exchange rates for the year ended 31 March 2020 3,247 733 753 428 5,161 Organic revenue growth 241 65 (43) (60) 203 Revenue from acquisitions 42 4 — 89 135 Revenue at constant exchange rates for the year ended 31 March 2021 3,530 802 710 457 5,499 Adjustment to actual exchange rates — (177) 27 8 (142) Revenue for the year ended 31 March 2021 3,530 625 737 465 5,357

Organic revenue growth at constant exchange rates 7% 9% (6)% (14)% 4% Revenue growth at constant exchange rates 9% 9% (6)% 7% 7%

1 Revenue for the year ended 31 March 2020 has been re-presented for the reclassification to exited business activities of certain B2B businesses. The table above demonstrates the application of the methodology set out in note 6 in determining organic and total revenue growth at constant exchange rates. Revenue at constant exchange rates is reported for both years using the average exchange rates applicable for the year ended 31 March 2020. 166 Experian plc Financial statements

Notes to the Group financial statements continued

9. Segment information continued (iii) Balance sheet Net assets/(liabilities) Total Central North Latin UK and EMEA/ operating Activities Total America America Ireland Asia Pacific segments and other Group At 31 March 2021 US$m US$m US$m US$m US$m US$m US$m Goodwill 3,133 611 718 799 5,261 — 5,261 Investments in associates 4 — 61 9 74 54 128 Other assets 1,969 495 503 715 3,682 1,000 4,682 Total assets 5,106 1,106 1,282 1,523 9,017 1,054 10,071 Total liabilities (994) (210) (345) (494) (2,043) (4,909) (6,952) Net assets/(liabilities) 4,112 896 937 1,029 6,974 (3,855) 3,119

Total Central North Latin UK and EMEA/ operating Activities Total America America Ireland Asia Pacific segments and other Group At 31 March 2020 US$m US$m US$m US$m US$m US$m US$m Goodwill 2,943 530 656 414 4,543 — 4,543 Investments in associates 22 — 58 7 87 36 123 Other assets 1,816 446 519 476 3,257 976 4,233 Total assets 4,781 976 1,233 897 7,887 1,012 8,899 Total liabilities (1,010) (165) (320) (228) (1,723) (4,895) (6,618) Net assets/(liabilities) 3,771 811 913 669 6,164 (3,883) 2,281

Central Activities and other comprises: 2021 2020 Net assets/ Net assets/ Assets Liabilities (liabilities) Assets Liabilities (liabilities) US$m US$m US$m US$m US$m US$m Central Activities 583 (249) 334 512 (241) 271 Investments in associates 54 — 54 36 — 36 Net debt 297 (4,123) (3,826) 329 (4,227) (3,898) Tax 120 (537) (417) 135 (427) (292) 1,054 (4,909) (3,855) 1,012 (4,895) (3,883)

Capital employed 2021 2020 US$m US$m North America 4,112 3,771 Latin America 896 811 UK and Ireland 937 913 EMEA/Asia Pacific 1,029 669 Total operating segments 6,974 6,164 Central Activities 388 307 Non-controlling interests (38) (6) Capital employed attributable to owners 7,324 6,465

The three-point average capital employed figure of US$6,849m, used in our calculation of ROCE, is determined by calculating the mathematical average of capital employed at 31 March 2021, 30 September 2020 and 31 March 2020. Experian plc Annual Report 2021 167

9. Segment information continued (iv) Capital expenditure, amortisation and depreciation Right-of-use Capital expenditure asset additions Amortisation Depreciation 2021 2020 2021 2020 2021 2020 2021 2020 US$m US$m US$m US$m US$m US$m US$m US$m North America 211 222 26 15 160 134 59 60 Latin America 81 107 3 17 61 70 17 19 UK and Ireland 41 60 14 9 50 42 28 25 EMEA/Asia Pacific 28 34 14 9 27 22 22 21 Total operating segments 361 423 57 50 298 268 126 125 Central Activities 61 64 — — 28 19 1 1 Total Group 422 487 57 50 326 287 127 126

Amortisation and depreciation above only include amounts charged to Benchmark PBT. (v) Revenue by country – continuing operations 2020 2021 (Re-presented) US$m US$m USA 3,529 3,245 UK 744 762 Brazil 546 647 Germany 81 8 Colombia 60 66 South Africa 55 62 Other 357 389 5,372 5,179

Revenue is primarily attributable to countries other than Ireland. No single client accounted for 10% or more of revenue in the current or prior year. Revenue from the USA, the UK and Brazil in aggregate comprises 90% (2020: 90%) of Group revenue. Revenue attributable to Germany was previously reported within Other; following the acquisition in the year of the Risk Management division of Arvato Financial Solutions (AFS) (see note 41) this is now analysed separately, and consequently comparative information has been re-presented. Financial statements (vi) Non-current assets by country 2020 2021 (Re-presented) US$m US$m USA 4,437 4,159 UK 1,079 1,042 Brazil 731 627 Germany 477 5 South Africa 268 249 Colombia 164 155 Other 703 603 Segment non-current assets by country 7,859 6,840 Central Activities 695 552 Deferred tax 86 107 8,640 7,499

To add clarity to the presentation of this information, non-current assets for Central Activities and deferred tax have been excluded from the analysis by country. The Group has no significant non-current assets located in Ireland. Non-current assets in Germany were previously reported within Other; following the acquisition of the Risk Management division of Arvato Financial Solutions (AFS) in the year (note 41) they are now analysed separately, and consequently comparative information has been re-presented. 168 Experian plc Financial statements

Notes to the Group financial statements continued

9. Segment information continued (b) Information on business segments (including non-GAAP disclosures) Total Total Business-to- Consumer business Central continuing Business Services segments Activities operations Year ended 31 March 2021 US$m US$m US$m US$m US$m Revenue from external customers Ongoing activities 4,050 1,307 5,357 — 5,357 Exited business activities 15 — 15 — 15 Total 4,065 1,307 5,372 — 5,372

Reconciliation from Benchmark EBIT to profit/(loss) before tax Benchmark EBIT Ongoing activities 1,192 283 1,475 (90) 1,385 Exited business activities 1 — 1 — 1 Total 1,193 283 1,476 (90) 1,386 Net interest expense included in Benchmark PBT (note 15(b)) (8) (2) (10) (111) (121) Benchmark PBT 1,185 281 1,466 (201) 1,265 Exceptional items (note 14(a)) 35 — 35 — 35 Impairment of goodwill (note 20) (53) — (53) — (53) Amortisation of acquisition intangibles (note 21) (118) (20) (138) — (138) Acquisition and disposal expenses (40) (1) (41) — (41) Adjustment to the fair value of contingent consideration (1) — (1) — (1) Non-benchmark share of post-tax (loss)/profit of associates — (3) (3) 19 16 Interest on uncertain tax provisions — — — (11) (11) Financing fair value remeasurements (note 15(c)) — — — 5 5 Profit/(loss) before tax 1,008 257 1,265 (188) 1,077

Total Total Business-to- Consumer business Central continuing Business Services segments Activities operations Year ended 31 March 20201 US$m US$m US$m US$m US$m Revenue from external customers Ongoing activities 4,034 1,127 5,161 — 5,161 Exited business activities 18 — 18 — 18 Total 4,052 1,127 5,179 — 5,179

Reconciliation from Benchmark EBIT to profit/(loss) before tax Benchmark EBIT Ongoing activities 1,251 247 1,498 (112) 1,386 Exited business activities 1 — 1 — 1 Total 1,252 247 1,499 (112) 1,387 Net interest expense included in Benchmark PBT (note 15(b)) (8) (2) (10) (122) (132) Benchmark PBT 1,244 245 1,489 (234) 1,255 Exceptional items (note 14(a)) (35) — (35) — (35) Amortisation of acquisition intangibles (note 21) (103) (21) (124) — (124) Acquisition and disposal expenses (37) (2) (39) — (39) Adjustment to the fair value of contingent consideration 4 — 4 — 4 Non-benchmark share of post-tax profit of associates — — — 6 6 Interest on uncertain tax provisions — — — (14) (14) Financing fair value remeasurements (note 15(c)) — — — (111) (111) Profit/(loss) before tax 1,073 222 1,295 (353) 942

1 Revenue of US$40m and Benchmark EBIT of US$(10)m for the year ended 31 March 2020 have been re-presented for the reclassification of our Consumer Services business in Latin America to the Consumer Services business segment; previously our Consumer Services business in this region was not sufficiently material to be disclosed separately. In addition, revenue and Benchmark EBIT have been re-presented for the reclassification to exited business activities of certain B2B businesses. Additional information by business segment, including that on total and organic growth at constant exchange rates, is provided in the Strategic report. Experian plc Annual Report 2021 169

10. Foreign currency (a) Principal exchange rates used Average Closing 2021 2020 2021 2020 2019 US dollar : Brazilian real 5.41 4.12 5.74 5.20 3.89 Pound sterling : US dollar 1.31 1.27 1.38 1.24 1.31 Euro : US dollar 1.17 1.11 1.17 1.09 1.12 US dollar : Colombian peso 3,699 3,382 3,720 4,052 3,163 US dollar : South African rand 16.36 14.79 14.76 17.81 14.47

(b) Foreign exchange risk (i) Brazilian real intra-Group funding Brazilian real intra-Group funding provided to Serasa S.A., from a Group company whose functional currency is not the Brazilian real, is not considered permanent and foreign exchange gains or losses on this funding are recognised in the Group income statement. As a result of the weakening of 10% in the Brazilian real against the US dollar in the year ended 31 March 2021, a charge of US$16m has been recognised within financing fair value remeasurements (2020: US$54m charge due to 34% weakening) (note 15(c)). The Group is similarly exposed to the impact of the Brazilian real strengthening or weakening against the US dollar in the future. A movement of 20% would result in a US$37m impact on profit before tax. There is no effect on total equity as a result of this exposure, since it arises on intra-Group funding and there would be a related equal but opposite foreign exchange movement recognised in the translation reserve within equity. (ii) Other exposures On the basis of the profile of foreign exchange exposures, and an assessment of reasonably possible changes in such exposures, there are no other material sensitivities to foreign exchange risk at the balance sheet dates. In making these assessments, actual data on movements in the principal currencies over the most recent three-year period has been considered together with exposures at the balance sheet dates. This methodology has been applied consistently.

11. Labour costs and employee numbers – continuing operations (a) Labour costs (including executive directors) 2021 2020 Notes US$m US$m Financial statements Wages and salaries 1,446 1,353 Social security costs 217 218 Share incentive plans 33(a) 111 88 Pension costs – defined benefit plans 35(a) 6 8 Pension costs – defined contribution plans 58 56 Employee benefit costs 1,838 1,723 Other labour costs 157 149 1,995 1,872

Wages and salaries include redundancy costs of US$28m (note 14(c)). Other labour costs includes those in respect of external contractors, outsourcing and the recruitment, development and training of employees. The definition of key management personnel, and an analysis of their remuneration, is given in note 44(d).

(b) Average monthly number of employees (including executive directors) 2021 2020 Full-time- Full-time- Full-time Part-time equivalent Full-time Part-time equivalent North America 6,992 49 7,016 6,620 49 6,645 Latin America 3,289 77 3,328 3,240 73 3,276 UK and Ireland 3,191 243 3,313 3,371 253 3,497 EMEA/Asia Pacific 3,955 69 3,989 3,671 72 3,707 Total operating segments 17,427 438 17,646 16,902 447 17,125 Central Activities 181 16 189 186 25 199 17,608 454 17,835 17,088 472 17,324 170 Experian plc Financial statements

Notes to the Group financial statements continued

12. Amortisation and depreciation charges 2021 2020 US$m US$m Benchmark: Amortisation of other intangible assets 326 287 Depreciation of property, plant and equipment 127 126 453 413 Non-benchmark: Amortisation of acquisition intangibles 138 124 591 537

An analysis by segment of amounts charged within Benchmark PBT is given in note 9(a)(iv). Analyses by asset type are given in notes 21 and 22. The depreciation charge for the year includes US$55m (2020: US$54m) in respect of right-of-use assets.

13. Fees payable to the Company’s auditor 2021 2020 US$m US$m Audit of the Company and Group financial statements 0.7 0.6 Audit of the financial statements of the Company’s subsidiaries 4.5 4.2 Audit-related assurance services 0.6 0.4 Other assurance services 0.1 0.5 Total fees payable to the Company’s auditor and its associates 5.9 5.7

Summary of fees by nature: Fees for audit services 5.2 4.8 Fees for audit-related assurance services 0.6 0.4 Fees for other assurance services 0.1 0.5 5.9 5.7

The guidelines covering the use of the Company’s auditor for non-audit services are set out in the Audit Committee report. Fees for other assurance services were capped at 30% (2020: 20%) of the fees for audit services. The cap was increased in light of the Revised Ethical Standard issued by the UK Financial Reporting Council in December 2019, but also includes audit-related assurance services. In the year ended 31 March 2021, fees payable for non-audit services, were 13% (2020: 20%) of fees payable for audit services. The fees for the year ended 31 March 2020 for non-audit services, excluding audit-related assurance services were 11% of fees payable for audit services. Such fees are reported within Other operating charges. The fees for audit-related assurance services relate to the Group’s half-yearly financial report and US$0.1m (2020: US$0.4m) of the fees for other assurance services was for bond issuance related reports. Experian plc Annual Report 2021 171

14. Exceptional items and other adjustments made to derive Benchmark PBT – continuing operations (a) Net charge for Exceptional items and other adjustments made to derive Benchmark PBT 2021 2020 Notes US$m US$m Exceptional items: Profit on disposal of associate 14(b) (120) — Restructuring costs 14(c) 50 — Impairment of intangible asset1 14(d) 27 — Legal provisions movements1 14(e) 8 35 Net (credit)/charge for Exceptional items (35) 35

Other adjustments made to derive Benchmark PBT: Amortisation of acquisition intangibles 12,21 138 124 Impairment of goodwill1 20 53 — Acquisition and disposal expenses 41 39 Adjustment to the fair value of contingent consideration1 1 (4) Non-benchmark share of post-tax profit of associates 23 (16) (6) Interest on uncertain tax provisions 11 14 Financing fair value remeasurements 15(c) (5) 111 Net charge for other adjustments made to derive Benchmark PBT 223 278 Net charge for Exceptional items and other adjustments made to derive Benchmark PBT 188 313

By income statement caption: Labour costs 30 8 Amortisation and depreciation charges 138 124 Other operating charges 150 62 Profit on disposal of associate (120) — Within operating profit 198 194 Within share of post-tax profit of associates (16) (6)

Within finance expense 15(a) 6 125 Financial statements Net charge for Exceptional items and other adjustments made to derive Benchmark PBT 188 313

1 Included in other operating charges. Acquisition and disposal expenses represent professional fees and expenses associated with completed, ongoing and terminated acquisition and disposal processes, as well as the integration and separation costs associated with completed deals. Of the total, US$2m (2020: US$8m) is recorded within labour costs in the Group income statement, and US$39m (2020: US$31m) is included within other operating charges. (b) Profit on disposal of investment in associate On 18 November 2020, the Group disposed of its 18.6% interest in Finicity Corporation for US$127m, recognising a gain on disposal of US$120m.

(c) Restructuring costs During the year the Group commenced a transformation programme in the UK and Ireland. The objectives of this programme are to simplify our technology estate, enhance customer experience and to return to profitable growth. In addition, we have launched a programme of restructuring initiatives in other regions. Costs of US$50m have been recognised, principally in the UK and Ireland, in connection with these actions with a related cash outflow of US$39m. Of this charge, US$28m related to redundancy costs, and US$22m related to other restructuring and consultancy costs included within other operating charges in the Group income statement. No further costs are expected to be incurred in relation to these initiatives.

(d) Impairment of intangible asset During the year an internally generated software asset in the UK and Ireland with a net book value of US$27m was identified as requiring impairment due to planned upgrade of our technology estate.

(e) Legal provisions movements During the current and prior year there has been a movement in provisions and related receivables in respect of a number of historic legal claims. 172 Experian plc Financial statements

Notes to the Group financial statements continued

15. Net finance costs (a) Net finance costs included in profit before tax 2021 2020 US$m US$m Interest income: Bank deposits, short-term investments and loan notes (11) (13) Interest on pension plan assets (1) — Interest income (12) (13) Finance expense: Eurobonds and notes 102 89 Bank loans, commercial paper, overdrafts and other 8 35 Commitment and facility fees 6 5 Interest on leases 10 10 Interest differentials on derivatives 7 6 Interest expense 133 145 (Credit)/charge in respect of financing fair value remeasurements (note 15(c)) (5) 111 Interest on uncertain tax provisions 11 14 Finance expense 139 270 Net finance costs included in profit before tax 127 257

(b) Net interest expense included in Benchmark PBT 2021 2020 US$m US$m Interest income (12) (13) Interest expense 133 145 Net interest expense included in Benchmark PBT 121 132

(c) Analysis of charge for financing fair value remeasurements 2021 2020 US$m US$m Fair value (gains)/losses on borrowings – attributable to interest rate risk (35) 12 Fair value losses/(gains) on borrowings – attributable to currency risk 114 (28) Losses/(gains) on interest rate swaps – fair value hedges 31 (26) (Gains)/losses on cross-currency swaps – fair value hedges (75) 33 Foreign currency gain on cross-currency swaps designated as a cashflow hedge – transfer from OCI (33) — Gains/(losses) on items in hedging relationships – hedge ineffectiveness 2 (9) Fair value (gains)/losses on non-hedging derivatives (16) 70 Foreign exchange losses on Brazilian real intra-Group funding 16 54 Other foreign exchange losses/(gains) on financing activities 9 (1) Decrease in present value of put options (13) (2) Movement in Other financial assets at FVPL (3) — Movement in connection with commitments to purchase own shares — (1) (5) 111 Experian plc Annual Report 2021 173

15. Net finance costs continued (d) Interest rate risk The following table shows the sensitivity to interest rate risk, on the basis of the profile of Net debt at the balance sheet dates and an assessment of reasonably possible changes in the principal interest rates, with all other variables held constant. In making this assessment, actual movements in relevant interest rates over the most recent three-year period have been considered and a consistent methodology applied. An indication of the primary cause of the reported sensitivity is included. 2021 2020 Gain/(loss) US$m US$m Impact on profit for the financial year: Effect of an increase of 1.1% (2020: 0.7%) on US dollar-denominated Net debt: Due to fair value gains on interest rate swaps offset by higher interest on floating rate borrowings 19 11

Effect of an increase of 0.3% (2020: 0.2%) on pound sterling-denominated Net debt: Due to the revaluation of borrowings and related derivatives 2 1

Effect of an increase of 2.1% (2020: 2.8%) on Brazilian real-denominated Net debt: Due to higher interest income on cash and cash equivalents 1 1

Effect of an increase of 0.1% (2020: 0.1%) on euro-denominated Net debt: Due to fair value gains on interest rate swaps offset by higher interest on floating rate borrowings — —

Impact on other components of equity: Effect of an increase of 1.1% (2020: 0.7%) on US dollar-denominated Net debt: Due to fair value gains on cross-currency swaps treated as a cash flow hedge 20 —

Effect of an increase of 0.3% (2020: 0.2%) on pound sterling-denominated Net debt: Due to fair value gains on cross-currency swaps treated as a cash flow hedge (6) —

16. Tax charge (a) Analysis of tax charge in the Group income statement Financial statements 2021 2020 US$m US$m Current tax: Tax on income for the year 193 206 Adjustments in respect of prior years 2 6 Total current tax charge 195 212 Deferred tax: Origination and reversal of temporary differences 79 58 Adjustments in respect of prior years 1 (7) Total deferred tax charge 80 51 Tax charge 275 263

The tax charge comprises: UK tax 9 10 Non-UK tax 266 253 275 263 174 Experian plc Financial statements

Notes to the Group financial statements continued

16. Tax charge continued (b) Tax reconciliations (i) Reconciliation of the tax charge As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the main rate of corporation tax in the UK. The effective rate of tax for each year based on profit before tax is higher (2020: higher) than the main rate of corporation tax in the UK, with the differences explained in note 16(c). 2021 2020 US$m US$m Profit before tax 1,077 942

Profit before tax multiplied by the main rate of UK corporation tax of 19% (2020: 19%) 205 179 Effects of: Adjustments in respect of prior years 3 (1) Tax on Exceptional items (16) 3 Income not taxable (5) (15) Losses not recognised 20 18 Expenses not deductible 15 9 Different effective tax rates in non-UK businesses 31 31 Local taxes 33 40 Recognition/utilisation of previously unrecognised tax losses (11) (1) Tax charge 275 263

Effective rate of tax based on profit before tax 25.5% 27.9%

Expenses not deductible include movements in uncertain tax provisions and the impairment of goodwill. Local taxes primarily comprise US state taxes. (ii) Reconciliation of the tax charge to the Benchmark tax charge 2021 2020 US$m US$m Tax charge 275 263 Tax relief on Exceptional items and other adjustments made to derive Benchmark PBT 53 61 Benchmark tax charge 328 324

Benchmark PBT 1,265 1,255 Benchmark tax rate 25.9% 25.8%

(c) Factors that affect the tax charge Prior year adjustments reflect the net movement on historical tax positions, including adjustments for matters that have been substantively agreed with local tax authorities, and adjustments to deferred tax assets based on latest estimates and assumptions. Expenses not deductible include charges in respect of uncertain tax positions, financing fair value remeasurements not allowable for tax purposes, and losses on the disposal of businesses which are not subject to tax relief. The Group’s tax rate reflects its internal financing arrangements in place to fund non-UK businesses. In addition, in the normal course of business, the Group has a number of open tax returns with various tax authorities with whom it is in active dialogue. At 31 March 2021 the Group held current provisions of US$350m (2020: US$327m) in respect of uncertain tax positions. Liabilities relating to these open and judgmental matters are based on an assessment as to whether additional taxes will be due, after taking into account external advice where appropriate. The resolution of these tax matters may take many years. While the timing of developments in resolving these matters is inherently uncertain, the Group does not expect to materially increase its uncertain tax provisions in the next 12 months, however if an opportunity arose to resolve the matters for less than the amounts provided, a settlement may be made with a corresponding reduction in the provision.

(d) Other factors that affect the future tax charge The Group’s tax charge will continue to be influenced by the profile of profits earned in the different countries in which the Group’s subsidiaries operate. The Group could be affected by changes in tax law in the future, as we expect countries to amend legislation in respect of international tax. The main rate of UK corporation tax is 19% and it has been announced that the rate will increase to 25% from 1 April 2023. This will have a consequential effect on the Group’s future tax charge. If this rate change had been substantively enacted at the current balance sheet date the deferred tax asset would have increased by US$13m.

17. Discontinued operations There have been no material divestments of subsidiaries during the year ended 31 March 2021. On 31 May 2017, the Group completed the divestment of CCM, and the results and cash flows of that business were accordingly classified as discontinued. Residual disposal costs of US$2m were incurred during the year ended 31 March 2020 and cash outflows from operating activities were US$6m in that year. Experian plc Annual Report 2021 175

18. Earnings per share disclosures (a) Earnings per share Basic Diluted 2021 2020 2021 2020 US cents US cents US cents US cents Continuing and discontinued operations 88.2 74.8 87.6 74.2 Add: loss from discontinued operations — 0.2 — 0.2 Continuing operations 88.2 75.0 87.6 74.4 Add: Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax 14.9 28.0 14.7 27.7 Benchmark EPS (non-GAAP measure) 103.1 103.0 102.3 102.1

(b) Analysis of earnings (i) Attributable to owners of Experian plc 2021 2020 US$m US$m Continuing and discontinued operations 803 675 Add: loss from discontinued operations — 2 Continuing operations 803 677 Add: Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax 135 252 Benchmark earnings attributable to owners of Experian plc (non-GAAP measure) 938 929

(ii) Attributable to non-controlling interests 2021 2020 US$m US$m (Loss)/profit for the financial year attributable to non-controlling interests (1) 2 Add: amortisation of acquisition intangibles attributable to non-controlling interests, net of related tax — — Benchmark earnings attributable to non-controlling interests (non-GAAP measure) (1) 2

(c) Reconciliation of Total Benchmark earnings to profit for the financial year 2021 2020 Financial statements US$m US$m Total Benchmark earnings (non-GAAP measure) 937 931 Loss from discontinued operations — (2) Loss from Exceptional items and other adjustments made to derive Benchmark PBT, net of related tax (135) (252) Profit for the financial year 802 677

(d) Weighted average number of ordinary shares 2021 2020 million million Weighted average number of ordinary shares 910 902 Add: dilutive effect of share incentive awards, options and share purchases 7 8 Diluted weighted average number of ordinary shares 917 910

19. Dividends 2021 2020 US cents US cents per share US$m per share US$m Amounts recognised and paid during the financial year: First interim – paid in February 2021 (2020: January 2020) 14.5 133 14.5 130 Second interim – paid in July 2020 (2020: July 2019) 32.5 294 32.5 294 Dividends paid on ordinary shares 47.0 427 47.0 424

Full-year dividend for the financial year1 47.0 430 47.0 423

1 The cost of the second interim dividend for the year ended 31 March 2020 paid in July 2020, increased by US$1m due to foreign exchange rate movements. A second interim dividend in respect of the year ended 31 March 2021 of 32.5 US cents per ordinary share will be paid on 23 July 2021, to shareholders on the register at the close of business on 25 June 2021. This dividend is not included as a liability in these financial statements. This second interim dividend and the first interim dividend paid in February 2021 comprise the full-year dividend for the financial year of 47.0 US cents per ordinary share. Further administrative information on dividends is given in the Shareholder and corporate information section. Dividend amounts are quoted gross. In the year ended 31 March 2021, the employee trusts waived their entitlements to dividends of US$2m (2020: US$4m). There is no entitlement to dividend in respect of own shares held as treasury shares. 176 Experian plc Financial statements

Notes to the Group financial statements continued

20. Goodwill (a) Movements in goodwill 2021 2020 US$m US$m Net book amount At 1 April 4,543 4,324 Differences on exchange 114 (252) Additions through business combinations (note 41(a)) 657 471 Impairment charge (53) — At 31 March 5,261 4,543

The gross carrying amount of goodwill was US$5,314m at 31 March 2021, US$4,543m at 31 March 2020 and US$4,324m at 31 March 2019. The accumulated impairment loss was US$53m at 31 March 2021 and US$nil at 31 March 2020 and 31 March 2019.

(b) Goodwill by CGU 2021 2020 US$m US$m North America 3,133 2,943 Latin America 611 530 UK and Ireland 718 656 EMEA 711 286 Asia Pacific 88 128 At 31 March 5,261 4,543

(c) Key assumptions for value-in-use calculations by CGU 2021 2020 Long-term Long-term Discount rate growth rate Discount rate growth rate % pa % pa % pa % pa North America 9.1 2.3 12.5 2.3 Latin America 12.8 4.7 16.8 4.7 UK and Ireland 8.9 2.3 10.7 2.3 EMEA 10.4 3.9 14.7 3.9 Asia Pacific 9.4 5.3 10.8 5.3

As indicated in note 5(a), value-in-use calculations are underpinned by financial budgets, looking forward up to five years. Management’s key assumptions in setting the financial budgets for the initial five-year period were as follows: forecast revenue growth rates were based on past experience, adjusted for the strategic opportunities within each CGU; the forecasts typically used average nominal growth rates of up to 11%, with Asia Pacific having rates of up to 17%; Benchmark EBIT was forecast based on historic margins. These were expected to be stable throughout the period in the mature CGUs, and improve annually by a low-single-digit amount in EMEA and Asia Pacific; and forecast Benchmark operating cash flow conversion rates were based on historic experience and performance expectations with rates in a range from 65% to 90% unless a Benchmark EBIT loss was forecast. In these circumstances cash outflows were forecast to exceed the Benchmark EBIT loss. Further details of the principles used in determining the basis of allocation by CGU and annual impairment testing are given in note 5(a). (d) Results of annual impairment review as at 31 March 2021 The review for the EMEA CGU indicated that the recoverable amount exceeded the carrying value by US$348m and that any decline in estimated value-in-use in excess of that amount would result in the recognition of an impairment charge. The sensitivities, which result in the recoverable amount being equal to the carrying value, can be summarised as follows: an absolute increase of 2.0 percentage points in the discount rate, from 10.4% to 12.4%; or an absolute reduction of 2.7 percentage points in the long-term growth rate, from growth of 3.9% to a growth of 1.2%; or a reduction of 6.8 percentage points in the forecast terminal profit margin, from 23.6% to 16.8%. A reduction in the annual margin improvement of approximately 1.4 percentage points per year over the five-year forecast period would also reduce the recoverable amount to the carrying value. Following a challenging year impacted by the effects of the COVID-19 pandemic, growth In Asia Pacific was adversely affected. Accordingly, the carrying value of the Asia Pacific CGU has been reduced to its recoverable amount of US$138m through recognition of an impairment charge of US$53m. This charge is recognised within Other operating charges in the Group income statement. Any additional movement in the key assumptions at the balance sheet date would lead to a further impairment of goodwill. An absolute increase of 1.0 percentage points in the discount rate would lead to a further impairment of US$42m or an absolute reduction in the long-term growth rate of 1.0 percentage points would lead to a further impairment of US$38m. The recoverable amount of all other CGUs exceeded their carrying value, on the basis of the assumptions set out in the table in note 20(c) and any reasonably possible changes thereof. Experian plc Annual Report 2021 177

21. Other intangible assets Acquisition intangibles Customer Acquired Marketing- Internally and other software related Internal use generated relationships development assets Databases software software Total US$m US$m US$m US$m US$m US$m US$m Cost At 1 April 2020 1,094 337 91 1,311 376 860 4,069 Differences on exchange 25 8 (2) (13) (2) 35 51 Additions through business combinations 386 57 11 8 1 18 481 Other additions — — — 147 30 197 374 Other disposals — (1) — (108) (78) (68) (255) At 31 March 2021 1,505 401 100 1,345 327 1,042 4,720

Accumulated amortisation and impairment At 1 April 2020 617 224 81 882 300 382 2,486 Differences on exchange 10 5 (2) (8) 1 20 26 Charge for the year 94 38 6 157 28 141 464 Impairment charge — — — — — 33 33 Other disposals — (1) — (108) (78) (68) (255) At 31 March 2021 721 266 85 923 251 508 2,754

Net book amount at 31 March 2021 784 135 15 422 76 534 1,966

Acquisition intangibles Customer Acquired Marketing- Internally and other software related Internal use generated relationships development assets Databases software software Total US$m US$m US$m US$m US$m US$m US$m Cost At 1 April 2019 1,023 295 98 1,394 362 709 3,881 Differences on exchange (73) (20) (11) (170) (23) (29) (326) Financial statements Additions through business combinations 144 62 4 1 1 3 215 Other additions — — — 175 39 189 403 Other disposals — — — (89) (3) (12) (104) At 31 March 2020 1,094 337 91 1,311 376 860 4,069

Accumulated amortisation and impairment At 1 April 2019 586 205 83 932 290 311 2,407 Differences on exchange (47) (17) (12) (124) (16) (13) (229) Charge for the year 78 36 10 163 28 96 411 Other disposals — — — (89) (2) (12) (103) At 31 March 2020 617 224 81 882 300 382 2,486

Net book amount at 1 April 2019 437 90 15 462 72 398 1,474 Net book amount at 31 March 2020 477 113 10 429 76 478 1,583

Within the above are the following individually material assets at 31 March 2021: North America Healthcare customer relationships have a net book value of US$188m, with a remaining amortisation period of seven years. North America Tapad, Inc. customer relationships with a net book value of US$152m and a remaining amortisation period of 13 years. Arvato Risk Management customer relationships with a net book value of US$146m, and a remaining amortisation period of 12 years. In addition to the development capitalised above we charged US$138m (2020: US$153m) of research and development costs in the Group income statement. The impairment charge in the year largely relates to an internally generated software asset in the UK and Ireland identified as requiring impairment due to planned upgrade of our technology estate. 178 Experian plc Financial statements

Notes to the Group financial statements continued

22. Property, plant and equipment Right-of-use assets Freehold Leasehold Plant and Land and Motor Plant and properties improvements equipment buildings vehicles equipment Total US$m US$m US$m US$m US$m US$m US$m Cost At 1 April 2020 127 154 589 197 15 29 1,111 Differences on exchange 10 — 23 4 1 — 38 Additions through business combinations — — 2 3 — — 5 Other additions — 4 44 26 8 23 105 Disposals (1) (4) (30) (35) (4) (11) (85) At 31 March 2021 136 154 628 195 20 41 1,174

Accumulated amortisation and impairment At 1 April 2020 42 77 438 36 5 11 609 Differences on exchange 3 — 17 2 — — 22 Charge for the year 3 5 64 40 6 9 127 Impairment charge — — 3 1 — — 4 Disposals — (4) (27) (17) (3) (6) (57) At 31 March 2021 48 78 495 62 8 14 705

Net book amount at 31 March 2021 88 76 133 133 12 27 469

Right-of-use assets Freehold Leasehold Plant and Land and Motor Plant and properties improvements equipment buildings vehicles equipment Total US$m US$m US$m US$m US$m US$m US$m Cost At 1 April 2019 139 142 556 176 11 20 1,044 Differences on exchange (17) — (26) (10) — (1) (54) Additions through business combinations 2 — 2 — — — 4 Other additions 3 12 69 34 6 10 134 Disposals — — (12) (3) (2) — (17) At 31 March 2020 127 154 589 197 15 29 1,111

Accumulated depreciation At 1 April 2019 43 72 401 — — 3 519 Differences on exchange (4) — (18) (2) — — (24) Charge for the year 3 5 64 40 6 8 126 Disposals — — (9) (2) (1) — (12) At 31 March 2020 42 77 438 36 5 11 609

Net book amount at 1 April 2019 96 70 155 176 11 17 525 Net book amount at 31 March 2020 85 77 151 161 10 18 502

The disposal of right-of-use assets in the year ended 31 March 2021 largely relates to sublease arrangements, leading to the derecognition of right-of-use assets and the recognition of sublease receivables in North America. Experian plc Annual Report 2021 179

23. Investments in associates 2021 2020 US$m US$m At 1 April 123 122 Differences on exchange 6 (5) Fair value gain on step acquisition — 17 Acquisition of controlling stake in associate — (19) Share of (loss)/profit after tax (2) 37 Dividends received (17) (6) Impairment charge — (23) Reversal of previous impairment charge 23 — Disposals (5) — At 31 March 128 123

On 18 November 2020, the Group disposed of its 18.6% interest in Finicity Corporation for US$127m. A gain on disposal of US$120m was recognised in the Group income statement, after additional costs of US$2m in relation to the transaction. In the year ended 31 March 2020 the share of profit after tax of associates included a gain of US$36m relating to a significant business disposal by an associate, together with an impairment charge of US$23m in respect of the investment in that associate. The recoverable amount of the investment in the associate has been assessed during the year and in light of a favourable trading performance a reversal of the impairment charge of US$23m has been recognised. The gain on disposal, impairment charge and its reversal are reported within non-benchmark items in the Group income statement.

24. Trade and other receivables (a) Analysis by type and maturity 2021 2020 US$m US$m Trade and unbilled receivables 923 853 Credit note provision (19) (13) Trade receivables – after credit note provision 904 840 Contract assets 151 167 Financial statements Trade receivables and contract assets 1,055 1,007 Loss allowance (23) (25) Net impaired trade receivables and contract assets 1,032 982 VAT and equivalent taxes recoverable 5 4 Prepayments 220 160 Contract costs 100 96 1,357 1,242

As reported in the Group balance sheet: Current trade and other receivables 1,197 1,078 Non-current trade and other receivables 160 164 1,357 1,242

There is no material difference between the fair value and the book value stated above. Non-current trade and other receivables comprise prepayments, contract assets, unbilled receivables and contract costs. At 31 March 2019, the value of trade and unbilled receivables was US$796m and contract assets was US$129m. 180 Experian plc Financial statements

Notes to the Group financial statements continued

24. Trade and other receivables continued (b) Loss allowance matrix 2021 2020 Gross carrying Gross carrying Loss allowance amount Loss allowance amount US$m US$m US$m US$m Not past-due (3) 840 (8) 795 Up to three months past-due (2) 157 (3) 158 Three to six months past-due (2) 26 (2) 24 Over six months past-due (16) 32 (12) 30 Trade receivables and contract assets (23) 1,055 (25) 1,007 Loss allowance (note 24(c)) (23) (25) Net trade receivables and contract assets 1,032 982

(c) Movements in the loss allowance 2021 2020 US$m US$m At 1 April 25 18 (Decrease)/increase in the loss allowance recognised in the Group income statement (1) 12 Receivables written off in the year as uncollectable (2) (2) Differences on exchange 1 (3) At 31 March 23 25

(d) Analysis by denomination of currency Contract assets Trade receivables 2021 2020 2021 2020 US$m US$m US$m US$m US dollar 50 73 499 478 Pound sterling 9 9 142 138 Brazilian real 3 4 117 96 Euro 32 35 55 32 Colombian peso — 4 13 12 South African rand 10 5 7 10 Other 47 37 48 49 151 167 881 815

25. Cash and cash equivalents - excluding bank overdrafts (a) Analysis by nature 2021 2020 US$m US$m Cash at bank and in hand 113 84 Short-term investments 67 193 180 277

The effective interest rate for cash and cash equivalents held at 31 March 2021 is 0.8% (2020: 1.6%). There is no material difference between the fair value and the book value stated above.

(b) Analysis by external credit rating 2021 2020 US$m US$m Counterparty holding of more than US$2m: A rated 83 221 B rated 79 37 Counterparty holding of more than US$2m 162 258 Counterparty holding of less than US$2m 18 19 180 277 Experian plc Annual Report 2021 181

26. Trade and other payables (a) Analysis by type and maturity 2021 2020 Current Non-current Current Non-current US$m US$m US$m US$m Trade payables 187 — 275 — VAT and other equivalent taxes payable 30 — 23 — Social security costs 110 — 106 — Accruals 583 4 480 6 Contract liabilities 389 114 363 87 Other payables 244 41 183 28 1,543 159 1,430 121

There is no material difference between the fair value and the book value stated above. Other payables include employee benefits of US$97m (2020: US$83m) and deferred and contingent consideration of US$73m (2020: US$34m). At 31 March 2019, the value of contract liabilities was US$463m.

(b) Analysis by nature 2021 2020 US$m US$m Financial instruments 607 572 VAT and other equivalent taxes payable 30 23 Social security costs 110 106 Amounts within accruals and contract liabilities 955 850 Items other than financial instruments 1,095 979 1,702 1,551

Contractual undiscounted future cash flows in respect of financial instruments are shown in note 32.

27. Borrowings Financial statements (a) Analysis by carrying amounts and fair value Carrying amount Fair value 2021 2020 2021 2020 US$m US$m US$m US$m Current: Bonds: £400m 3.50% Euronotes 2021 562 — 556 — Commercial paper 25 447 25 447 Bank overdrafts 10 5 10 5 Lease obligations (note 29) 58 46 58 46 655 498 649 498

Non-current: Bonds: £400m 3.50% Euronotes 2021 — 509 — 507 £400m 2.125% Euronotes 2024 567 512 573 500 £400m 0.739% Euronotes 2025 551 — 543 — €500m 1.375% Euronotes 2026 618 577 624 556 US$500m 4.25% Notes 2029 500 500 563 574 US$750m 2.75% Notes 2030 738 763 760 718 £400m 3.25% Euronotes 2032 562 — 618 — Bank loans 2 900 2 900 Lease obligations (note 29) 144 155 144 155 3,682 3,916 3,827 3,910

Total borrowings 4,337 4,414 4,476 4,408

The effective interest rates for bonds approximate to the coupon rates indicated above. Other than lease obligations, borrowings are unsecured. Further information on the methodology used in determining fair values is given in note 31. 182 Experian plc Financial statements

Notes to the Group financial statements continued

27. Borrowings continued (b) Analysis by maturity 2021 2020 US$m US$m Less than one year 655 498 One to two years 49 1,300 Two to three years 35 185 Three to four years 589 25 Four to five years 564 527 Over five years 2,445 1,879 4,337 4,414

(c) Analysis by currency 2021 2020 US$m US$m US dollar 3,599 3,545 Pound sterling 545 722 Euro 95 75 Other 98 72 4,337 4,414

The above analysis takes account of the effect of cross-currency swaps and forward foreign exchange contracts and reflects the way in which the Group manages its exposures.

(d) Undrawn committed bank borrowing facilities 2021 2020 US$m US$m Facilities expiring in: Less than one year — 75 One to two years 400 — Two to three years 300 150 Three to four years — — Four to five years 1,950 1,950 2,650 2,175

These facilities are at variable interest rates and are in place for general corporate purposes, including the financing of acquisitions and the refinancing of other borrowings.

(e) Covenants and leverage ratio There is one financial covenant in connection with the borrowing facilities. Benchmark EBIT must exceed three times net interest expense before financing fair value remeasurements. The calculation of the financial covenant excludes the effects of IFRS 16. The Group monitors this, and the Net debt to Benchmark EBITDA leverage ratio, and has complied with this covenant throughout the year.

28. Net debt (non-GAAP measure) (a) Analysis by nature 2021 2020 US$m US$m Cash and cash equivalents (net of overdrafts) 170 272 Debt due within one year – commercial paper (25) (447) Debt due within one year – bonds and notes (554) — Debt due after more than one year – bonds and notes (3,526) (2,858) Debt due after more than one year – bank loans (2) (900) Derivatives hedging loans and borrowings 111 35 (3,826) (3,898) Experian plc Annual Report 2021 183

28. Net debt (non-GAAP measure) continued (b) Analysis by balance sheet caption 2021 2020 US$m US$m Cash and cash equivalents 180 277 Current borrowings (655) (498) Non-current borrowings (3,682) (3,916) Borrowings (4,337) (4,414) Total of Group balance sheet line items (4,157) (4,137) Lease obligations reported within borrowings excluded from Net debt 202 201 Accrued interest reported within borrowings excluded from Net debt 18 3 Derivatives reported within Other financial assets 117 52 Derivatives reported within Other financial liabilities (6) (17) (3,826) (3,898)

(c) Analysis of movements in Net debt Derivatives Liabilities hedging from Cash loans and Current Non-current financing Lease Accrued and cash borrowings borrowings borrowings activities obligations interest equivalents Net debt US$m US$m US$m US$m US$m US$m US$m US$m At 1 April 2020 35 (498) (3,916) (4,379) 201 3 277 (3,898) Cash flow (54) 66 — 12 (66) — (220) (274) Borrowings cash flow — 424 (98) 326 — — — 326 Reclassification of borrowings — (558) 558 — — — — — Net interest paid — — — — — — 115 115 Movement on accrued interest — (1) (14) (15) — 15 — — Net cash flow (54) (69) 446 323 (66) 15 (105) 167 Non-cash lease obligation additions — (19) (38) (57) 57 — — — Net share purchases — — — — — — 19 19

Additions through business combinations — (3) (16) (19) 4 — — (15) Financial statements Fair value gains 10 3 31 44 — — — 44 Exchange and other movements1 120 (69) (189) (138) 6 — (11) (143) At 31 March 2021 111 (655) (3,682) (4,226) 202 18 180 (3,826)

1 Exchange and other movements include US$8m in respect of lease obligation disposals.

Derivatives Liabilities hedging from Cash loans and Current Non-current financing Lease Accrued and cash borrowings borrowings borrowings activities obligations interest equivalents Net debt US$m US$m US$m US$m US$m US$m US$m US$m At 1 April 2019 (119) (910) (2,618) (3,647) 217 19 149 (3,262) Cash flow 169 30 33 232 (63) — 480 649 Borrowings cash flow — 284 (1,250) (966) — — — (966) Reclassification of borrowings — 100 (100) — — — — — Net interest paid — — — — — — (152) (152) Movement on accrued interest — 4 13 17 — (17) — — Net cash flow 169 418 (1,304) (717) (63) (17) 328 (469) Non-cash lease obligation additions — (20) (26) (46) 46 — — — Net share purchases — — — — — — (188) (188) Fair value gains/(losses) 14 31 (44) 1 — — — 1 Exchange and other movements (29) (17) 76 30 1 1 (12) 20 At 31 March 2020 35 (498) (3,916) (4,379) 201 3 277 (3,898) 184 Experian plc Financial statements

Notes to the Group financial statements continued

29. Leases The Group’s lease portfolio consists of 35 (2020: 33) significant property leases across the countries in which we operate. In addition, we lease approximately 121 (2020: 190) smaller properties, 700 (2020: 800) motor vehicles, and a small number of hardware assets. The average remaining lease term is 4.5 years (2020: 5.5 years) for significant property leases, 1.3 years (2020: 1.3 years) for other minor property leases and 2.0 years (2020: 1.7 years) for motor vehicles and plant and equipment. Extension and termination options are included within a number of property and equipment leases across the Group. These are used to maximise operational flexibility in terms of managing assets and lease exposures. The majority of extension and termination options are exercisable only by the Group and not by the respective lessor.

(a) Amounts recognised in the Group balance sheet 2021 2020 Notes US$m US$m Right-of-use assets: Land and buildings 22 133 161 Motor vehicles 22 12 10 Plant and equipment 22 27 18 At 31 March 172 189

Lease obligations: Current 27 58 46 Non-current 27 144 155 At 31 March 202 201

During the year the Group derecognised right-of-use assets of US$13m due to sublease arrangements in North America. The lease receivable held in relation to subleases at 31 March 2021 was US$13m (2020: US$nil), of which US$11m falls due after more than one year. Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the incremental borrowing rate is used. The incremental borrowing rate is unique to each country and class of assets therein and is based on the Group’s cost of debt, adjusted for factors specific to individual lessees and their borrowing capacity. The Group is exposed to potential future increases in variable lease payments based on an index or a rate, which are not included in the lease obligation until they take effect.

(b) Maturity of lease obligations – contractual undiscounted cash flows 2021 2020 US$m US$m Less than one year 58 54 One to two years 54 49 Two to three years 40 39 Three to four years 25 28 Four to five years 16 17 Over five years 37 46 Total undiscounted lease obligations at 31 March 230 233

(c) Amounts recognised in the Group income statement 2021 2020 Notes US$m US$m Depreciation charge for right-of-use assets: Land and buildings 22 40 40 Motor vehicles 22 6 6 Plant and equipment 22 9 8 Total depreciation charge for right-of-use assets 55 54 Interest expense 15 10 10 Expense relating to the lease of low-value assets 8 9 Total 73 73

We had no material sublease income in the current or prior year.

(d) Amounts recognised in the Group cash flow statement During the year lease payments of US$66m (2020: US$63m) comprised US$56m (2020: US$55m) for repayments of principal and US$10m (2020: US$8m) for payments of interest. Experian plc Annual Report 2021 185

29. Leases continued (e) Lease commitments The Group’s commitments for lease agreements where the term has not yet commenced total US$1m (2020: US$7m); such amounts are not recognised as lease obligations or right-of-use assets.

30. Financial assets and liabilities (a) Financial assets revalued through OCI 2021 2020 Current Non-current Total Current Non-current Total US$m US$m US$m US$m US$m US$m Cash flow hedge of borrowings (cross-currency swaps) — 37 37 — — — Listed investments — 44 44 — 32 32 Trade investments — 164 164 — 139 139 — 245 245 — 171 171

Listed investments are held in the UK to secure certain unfunded pension arrangements (note 34(b)).

(b) Other financial assets and liabilities (i) Summary 2021 2020 Current Non-current Total Current Non-current Total Assets US$m US$m US$m US$m US$m US$m Financial assets held at amortised cost — 103 103 — 94 94 Derivative financial instruments: Fair value hedge of borrowings (cross-currency swaps) — 81 81 — 10 10 Fair value hedge of borrowings (interest rate swaps) 5 — 5 — 35 35 Derivatives used for hedging 5 81 86 — 45 45 Non-hedging derivatives (equity swaps) — — — 2 — 2 Non-hedging derivatives (foreign exchange contracts) 6 — 6 15 — 15

Non-hedging derivatives (interest rate swaps) 9 27 36 — 58 58 Financial statements Other financial assets at fair value through profit or loss — 12 12 — 26 26 Assets at fair value through profit or loss 20 120 140 17 129 146 Total other financial assets 20 223 243 17 223 240

Total other financial assets comprise: Loans and receivables — 103 103 — 94 94 Derivative financial instruments 20 108 128 17 103 120 Convertible loan notes — 12 12 — 26 26 20 223 243 17 223 240

2021 2020 Current Non-current Total Current Non-current Total Liabilities US$m US$m US$m US$m US$m US$m Derivative financial instruments: Fair value hedge of borrowings (cross-currency swaps) — — — — 6 6 Derivatives used for hedging — — — — 6 6 Non-hedging derivatives (equity swaps) — 2 2 — 1 1 Non-hedging derivatives (foreign exchange contracts) 6 — 6 8 — 8 Non-hedging derivatives (interest rate swaps) 2 64 66 2 100 102 Derivative financial instruments1 8 66 74 10 107 117 Options in respect of non-controlling interests 7 213 220 13 — 13 Total other financial liabilities 15 279 294 23 107 130

1 Derivative financial liabilities are valued at FVPL. Amounts recognised in the Group income statement in connection with the Group’s hedging instruments are disclosed in note 15. There is no material difference between the fair values and the book values stated above. Financial assets held at amortised cost principally comprise amounts due following the disposal of businesses and include accrued interest. Other financial assets at fair value through profit or loss comprise convertible loan notes purchased when acquiring interests in associates and trade investments. 186 Experian plc Financial statements

Notes to the Group financial statements continued

30. Financial assets and liabilities continued (ii) Fair value and notional principal amounts of derivative financial instruments 2021 2020 Assets Liabilities Assets Liabilities Fair value Notional Fair value Notional Fair value Notional Fair value Notional US$m US$m US$m US$m US$m US$m US$m US$m Cross-currency swaps 118 1,413 — — 10 504 6 395 Interest rate swaps 41 1,201 66 1,563 93 1,046 102 2,097 Equity swaps — — 2 22 2 12 1 8 Foreign exchange contracts 6 508 6 545 15 286 8 198 165 3,122 74 2,130 120 1,848 117 2,698

Notional principal amounts are the amount of principal underlying the contracts at the reporting dates. (iii) Offsetting derivative financial assets and liabilities held with the same counterparty Assets Liabilities 2021 2020 2021 2020 US$m US$m US$m US$m Reported in the Group balance sheet 165 120 74 117 Related amounts not offset in the Group balance sheet (60) (70) (60) (70) Net amount 105 50 14 47

There are no amounts offset within the assets and liabilities reported in the Group balance sheet.

(c) Hedge accounting (i) Fair value and cash flow hedges We use interest rate swaps to hedge the interest rate risk arising on fixed rate borrowings, and cross-currency swaps to hedge the currency and interest rate risk arising on foreign currency fixed rate borrowings. Our risk management strategy for interest rate risk and currency risk is outlined in note 7. We determine the existence of an economic relationship between the hedging instruments and hedged items by comparing the currency, reference interest rates, duration, repricing and maturity dates and the notional amounts of the hedging instruments to those of the hedged items. We have established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of interest rate swaps and cross-currency swaps is identical to the hedged risk components. The main sources of ineffectiveness in the hedge accounting relationships arise from: The application of different interest rate curves to discount the cash flows of the hedged item and those of the hedging instrument. Differences in timing of cash flows of the hedged item and hedging instrument. The different impact of the counterparties’ credit risk on the fair value movements of the hedging instrument compared to the hedged item. (ii) Analysis of hedging instruments The Group held the following instruments to hedge exposures to changes in foreign currency and interest rates. Maturity Less than One to Two to Three to Four to Over At 31 March 2021 one year two years three years four years five years five years Fair value hedges Interest rate risk Interest rate swaps: Notional amount (US$m) 207 — — — — 300 Weighted average fixed interest rate 3.50% — — — — 1.66% Cross-currency swaps: Notional amount (US$m) — — — 395 — 504 Weighted average fixed interest rate — — — 2.13% — 1.38%

Foreign currency risk Cross-currency swaps: Notional amount (US$m) — — — 395 — 504 EUR:USD forward contract rate — — — — — 1.12 GBP:USD forward contract rate — — — 1.32 — —

Cash flow hedge Foreign currency risk Cross-currency swaps: Notional amount (US$m) — — — — 515 — GBP:USD forward contract rate — — — — 1.29 — Experian plc Annual Report 2021 187

30. Financial assets and liabilities continued (ii) Analysis of hedging instruments continued Maturity Less than One to Two to Three to Four to Over At 31 March 2020 one year two years three years four years five years five years Fair value hedges Interest rate risk Interest rate swaps: Notional amount (US$m) — 186 — — — 300 Weighted average fixed interest rate — 3.50% — — — 1.66% Cross-currency swaps: Notional amount (US$m) — — — — 395 504 Weighted average fixed interest rate — — — — 2.13% 1.38%

Foreign currency risk Cross-currency swaps: Notional amount (US$m) — — — — 395 504 EUR:USD forward contract rate — — — — — 1.12 GBP:USD forward contract rate — — — — 1.32 —

(d) Impact of hedging instruments 2021 Changes in fair value used for Notional amount Carrying amount of calculating hedge of hedging hedging instrument ineffectiveness instrument Assets Liabilities (Note 15(c)) US$m US$m US$m US$m Fair value hedges Interest rate risk Interest rate swaps 507 5 — 31

Cross-currency swaps 899 81 — 10 Financial statements

Foreign exchange risk Cross-currency swaps 899 81 — (85)

Cash flow hedge Foreign exchange risk Cross-currency swaps 515 37 — (35)

2020 Changes in fair value used for Notional amount Carrying amount of calculating hedge of hedging hedging instrument ineffectiveness instrument Assets Liabilities (Note 15(c)) US$m US$m US$m US$m Fair value hedges Interest rate risk Interest rate swaps 486 35 — (26) Cross-currency swaps 899 10 (6) 3

Foreign exchange risk Cross-currency swaps 899 10 (6) 30

Interest rate swaps are reported within Other financial assets, and cross-currency swaps are reported within Other financial assets and Other financial liabilities in the Group balance sheet. 188 Experian plc Financial statements

Notes to the Group financial statements continued

30. Financial assets and liabilities continued (e) Impact of hedged items 2021 2020 Accumulated Accumulated amount of fair amount of fair value hedge value hedge adjustments adjustments included in included in Changes in fair Changes in fair the carrying the carrying value used for value used for Carrying amount amount of the Carrying amount amount of the calculating hedge calculating hedge of hedged item hedged item of hedged item hedged item ineffectiveness ineffectiveness Liabilities (Note 15(c)) Liabilities (Note 15(c)) US$m US$m US$m US$m US$m US$m Fair value hedges Interest rate risk Borrowings (1,494) 40 (35) (1,424) 70 12 Foreign exchange risk Borrowings (987) 43 81 (910) (34) (28)

Cash flow hedge Foreign exchange risk Borrowings (551) n/a 35 — n/a —

The hedging reserve at 31 March 2021 includes US$2m (2020: US$nil) in respect of the cash flow hedge. Borrowings are reported within Borrowings in the Group balance sheet.

(f) Impact of hedge ineffectiveness 2021 2020 Fair value hedges (Note 15(c)) US$m US$m Interest rate risk 6 (11) Foreign exchange risk (4) 2 Gains/(losses) on items in hedging relationships – hedge ineffectiveness 2 (9)

Hedge ineffectiveness is reported within Net finance costs in the Group income statement.

(g) Analysis by valuation method for put options and items measured at fair value 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total US$m US$m US$m US$m US$m US$m US$m US$m Financial assets: Derivatives used for hedging — 86 — 86 — 45 — 45 Non-hedging derivatives — 42 — 42 — 75 — 75 Other financial assets at fair value through profit or loss — — 12 12 — — 26 26 Financial assets at fair value through profit or loss (note 30(b)) — 128 12 140 — 120 26 146 Derivatives used for hedging — 37 — 37 — — — — Listed and trade investments 44 — 164 208 32 — 139 171 Financial assets revalued through OCI (note 30(a)) 44 37 164 245 32 — 139 171 44 165 176 385 32 120 165 317

Financial liabilities: Derivatives used for hedging — — — — — (6) — (6) Non-hedging derivatives — (74) — (74) — (111) — (111) Put options — — (220) (220 — — (13) (13) Other liabilities at fair value through profit or loss — — (66) (66) — — (29) (29) — (74) (286) (360) — (117) (42) (159) Net financial assets/(liabilities) 44 91 (110) 25 32 3 123 158 Experian plc Annual Report 2021 189

30. Financial assets and liabilities continued (g) Analysis by valuation method for put options and items measured at fair value continued

The analysis by level is a requirement of IFRS 13 and the definitions are summarised here for completeness: assets and liabilities whose valuations are based on unadjusted quoted prices in active markets for identical assets and liabilities are classified as Level 1; assets and liabilities which are not traded in an active market, and whose valuations are derived from available market data that is observable for the asset or liability, are classified as Level 2; and assets and liabilities whose valuations are derived from inputs not based on observable market data are classified as Level 3. Level 3 items principally comprise minority shareholdings in unlisted businesses, trade investments, contingent consideration and put options associated with corporate transactions. Unlisted equity investments, initially measured at cost, are revalued where sufficient indicators are identified that a change in the fair value has occurred. The inputs to any subsequent valuations are based on a combination of observable evidence from external transactions in the investee’s equity and estimated discounted cash flows that will arise from the investment. Valuations of material contingent consideration and put options associated with corporate transactions, are based on Monte Carlo simulations using the most recent management expectations of relevant business performance, reflecting the different contractual arrangements in place. There would be no material effect on the amounts stated from any reasonably possible change in such inputs at 31 March 2021.

(h) Analysis of movements in Level 3 financial assets/(liabilities) Year ended 31 March 2021 Year ended 31 March 2020 Financial Financial assets Other assets Other revalued financial revalued financial through assets Contingent Put through assets Contingent Put OCI at FVPL consideration options Total OCI at FVPL consideration options Total US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m At 1 April 139 26 (29) (13) 123 67 — (27) (17) 23 Additions1,2 24 7 (33) (208) (210) 74 21 (34) — 61 Disposals — (24) — — (24) — — — — — Settlement of contingent consideration — — 25 — 25 — — — — — Financial statements Adjustment to the fair value of contingent consideration — — (1) — (1) — — 4 — 4 Valuation gains recognised in the Group income statement3 — 3 — 13 16 — — — 2 2 Valuation losses recognised in OCI — — — — — (2) — — — (2) Currency translation gains/(losses) recognised directly in OCI 1 — (3) (12) (14) — — 3 2 5 Other — — — — — — 5 — — 5 At 31 March 164 12 (66) (220) (110) 139 26 (29) (13) 123

1 Additions to put options, in the year ended 31 March 2021, comprised US$201m in respect of the acquisition of Arvato Risk Management, and US$7m in respect of the acquisition of Brain Soluções de Tecnologia Digital Ltda (note 41(a)). 2 Additions to contingent consideration comprised US$33m (2020: US$29m) in respect of acquisitions and US$nil (2020: US$5m) for transactions in respect of non-controlling interests.

3 Movements in the present value of expected future payments of put options are unrealised and are recognised in financing fair value remeasurements in the Group income statement. 190 Experian plc Financial statements

Notes to the Group financial statements continued

31. Fair value methodology Information in respect of the carrying amounts and the fair value of borrowings is included in note 27(a). There are no material differences between the carrying value of the Group’s other financial assets and liabilities not measured at fair value and their estimated fair values. The following assumptions and methods are used to estimate the fair values: the fair values of receivables, payables and cash and cash equivalents are considered to approximate to the carrying amounts; the fair values of short-term borrowings, other than bonds, are considered to approximate to the carrying amounts due to the short maturity terms of such instruments; the fair value of that portion of bonds carried at amortised cost is based on quoted market prices, employing a valuation methodology falling within Level 1 of the IFRS 13 fair value hierarchy; the fair values of long-term variable rate bank loans and lease obligations are considered to approximate to the carrying amount; and the fair values of other financial assets and liabilities are calculated based on a discounted cash flow analysis, using a valuation methodology falling within Level 2 of the IFRS 13 fair value hierarchy.

32. Contractual undiscounted future cash flows for financial liabilities Less than One to Two to Three to Four to Over one year two years three years four years five years five years Total At 31 March 2021 US$m US$m US$m US$m US$m US$m US$m Borrowings 749 138 124 660 639 2,704 5,014 Net settled derivative financial instruments – interest rate swaps 28 26 19 11 8 6 98 Gross settled derivative financial instruments: Outflows for derivative contracts 545 — — — — — 545 Inflows for derivative contracts (539) — — — — — (539) Gross settled derivative financial instruments 6 — — — — — 6 Options in respect of acquisitions and non-controlling interests 7 — — — 11 202 220 Trade and other payables 562 43 — — — 2 607 Cash outflows 1,352 207 143 671 658 2,914 5,945

Less than One to Two to Three to Four to Over one year two years three years four years five years five years Total At 31 March 2020 US$m US$m US$m US$m US$m US$m US$m Borrowings 583 1,372 249 88 573 2,047 4,912 Net settled derivative financial instruments – interest rate swaps 11 11 11 9 6 6 54 Gross settled derivative financial instruments: Outflows for derivative contracts 207 9 9 9 400 — 634 Inflows for derivative contracts (199) (8) (8) (8) (380) — (603) Gross settled derivative financial instruments 8 1 1 1 20 — 31 Options in respect of non-controlling interests 13 — — — — — 13 Trade and other payables 538 30 — — 1 3 572 Cash outflows 1,153 1,414 261 98 600 2,056 5,582

The table above analyses financial liabilities into maturity groupings, based on the period from the balance sheet date to the contractual maturity date. As the amounts disclosed are the contractual undiscounted cash flows, they differ from the carrying values and fair values. Contractual undiscounted future cash outflows for derivative financial liabilities in total amount to US$104m (2020: US$85m). Experian plc Annual Report 2021 191

33. Share incentive plans (a) Cost of share-based compensation 2021 2020 US$m US$m Share awards 99 78 Share options 7 5 Expense recognised (all equity-settled) 106 83 Charge for associated social security obligations 5 5 Total expense recognised in the Group income statement 111 88

The Group has a number of equity-settled, share-based employee incentive plans. Further information on share award arrangements is given in note 33(b). As the numbers of share options granted or outstanding and the related charge to the Group income statement are not significant, no further disclosures are included in these financial statements.

(b) Share awards (i) Summary of arrangements and performance conditions There are three plans under which share awards are currently granted – the two Experian Co-investment Plans (the CIP) and the Experian Performance Share Plan (the PSP). Awards typically take the form of a grant of free shares which vest over a service period of three years, with a maximum term generally of the same length, and are settled by share distribution. The assumption at grant date for employee departures prior to vesting is 20% for certain unconditional awards, which are only made under the PSP. Other details in respect of conditional awards are given below. During the year ended 31 March 2021, a one-off award was made under the PSP to employees who are not eligible to participate in existing share award schemes. These awards had no service or performance conditions attached and vested immediately. Participants who hold the shares received for three years will be entitled to receive two matching shares for each share they originally received. The grant date assumption is that 30% of these matching awards will not vest. CIP For the purposes of IFRS 2, the grant date for these plans is the start of the financial year in which performance is assessed. This is before the number of shares to be awarded is determined but the underlying value of the award is known, subject to the outcome of the performance condition. The value of awarded shares reflects the performance outcome assumed at the date of their issue to participants and is recognised over a four-year period. The range of performance conditions for awards under these plans is set out below. The Profit performance condition requires Benchmark PBT per share growth at the stated percentages over a three-year period for the awards made in year ended 31 March 2019. The profit condition for awards Financial statements made in the years ended 31 March 2021 and 31 March 2020 require adjusted Benchmark EPS growth at the stated percentages over a three-year period. The cumulative Benchmark operating cash flow performance condition (the ‘Cash flow condition’) is based on cumulative Benchmark operating cash flow over a three-year period. The period of assessment commences at the beginning of the financial year of grant. These are not market-based performance conditions as defined by IFRS 2. PSP The range of Profit performance conditions for conditional awards under this plan is the same as those for the CIP described above. For the years ended 31 March 2021 and 31 March 2020 there is an additional Return on Capital Employed condition (‘ROCE condition’). This condition requires average ROCE over the period at the percentages stated below. Both these conditions are not market-based performance conditions as defined by IFRS 2 and are also measured over a three-year period commencing at the beginning of the financial year of grant. The TSR performance condition is considered a market-based performance condition as defined by IFRS 2. In valuing the awarded shares, TSR is evaluated using a Monte Carlo simulation, with historic volatilities and correlations for comparator companies measured over the three-year period preceding valuation and an implied volatility for Experian plc ordinary shares. 192 Experian plc Financial statements

Notes to the Group financial statements continued

33. Share incentive plans continued (i) Summary of arrangements and performance conditions continued Year ended 31 March 2021 31 March 2020 31 March 2019 CIP PSP CIP PSP CIP PSP Profit condition: Measure Adjusted Adjusted Adjusted Adjusted Benchmark PBT Benchmark PBT Benchmark EPS Benchmark EPS Benchmark EPS Benchmark EPS per share per share Proportion of awards subject to condition 50% 50% 50% 50% 50% 75% Minimum payout requirement 3% per annum 3% per annum 5% per annum 5% per annum 5% per annum 5% per annum Target payout requirement 4% per annum 4% per annum 6% per annum 6% per annum 6% per annum 6% per annum Maximum payout requirement 7% per annum 7% per annum 9% per annum 9% per annum 9% per annum 9% per annum Assumed outcome at grant date 77.8% 77.8% 66.7% 66.7% 66.7% 66.7% Cash flow condition: Proportion of awards subject to condition 50% — 50% — 50% — Minimum payout requirement US$3.7bn — US$3.7bn — — — Target payout requirement US$3.8bn — US$3.8bn — US$3.7bn — Maximum payout requirement US$4.1bn — US$4.1bn — US$4.1bn — Assumed outcome at grant date 77.8% — 77.2% — 66.4% — ROCE condition: Proportion of awards subject to condition — 25% — 25% — — Minimum payout requirement — 14.5% per annum — 14.5% per annum — — Target payout requirement — 15.4% per annum — 15.4% per annum — — Maximum payout requirement — 16.0% per annum — 16.0% per annum — — Assumed outcome at grant date — 83% — 75% — — TSR condition: Proportion of awards subject to condition — 25% — 25% — 25% Assumed outcome at grant date — 61.8% — 61.8% — 27.8%

(ii) Information on share grant valuations Share grants are valued by reference to the market price on the day of award, with no modification for dividend distributions or other factors, as participants are entitled to dividend distributions on awarded shares. Market-based performance conditions are included in the fair value measurement on the grant date and are not revised for actual performance. Awards granted in the year ended 31 March 2021 had a weighted average fair value per share of £26.84 (2020: £23.45). (iii) Share awards outstanding 2021 2020 million million At 1 April 12.2 13.7 Grants 4.1 4.3 Forfeitures (0.5) (0.7) Lapse of awards (0.3) (0.3) Vesting (4.6) (4.8) At 31 March 10.9 12.2

Analysis by plan: CIP 3.5 4.2 PSP – conditional awards 3.0 3.4 PSP – unconditional awards 4.4 4.6 At 31 March 10.9 12.2 Experian plc Annual Report 2021 193

34. Post-employment benefit plans and related risks An overview of the Group’s post-employment benefit plans and the related risks is given below. The additional information required by IAS 19, which relates only to the Group’s defined benefit pension plans and post-employment medical benefits obligations, is set out in note 35.

(a) Funded pension plans The Group’s principal defined benefit plan is the Experian Pension Scheme, which provides benefits for certain UK employees. The plan was closed to new entrants in 2009. It is intended that it will close to the accrual of new benefits from 1 April 2022, at which point all UK employees will be offered membership of the Group’s UK defined contribution plan. This is currently under consultation with the active members of the plan with the outcome expected to be determined no later than 1 September 2021. The Experian Pension Scheme has rules which specify the benefits to be paid, with the level of pension benefit that an employee will receive on retirement dependent on age, length of service and salary. As at 31 March 2021, there were 95 (2020: 110) active members of this plan, 1,309 (2020: 1,363) deferred members and 2,494 (2020: 2,596) pensioner members. The Group provides a defined contribution plan, the Experian Retirement Savings Plan, to other eligible UK employees. Under this plan, employee and employer contributions are paid by the Group into an independently administered fund, which is used to fund member pensions at retirement. As at 31 March 2021, there were 3,080 active members of this plan (2020: 3,128). Both UK plans are governed by trust deeds, which ensure that their finances and governance are independent from those of the Group. Trustees are responsible for overseeing the investments and funding of the plans and plan administration. The UK pensions environment is regulated by The Pensions Regulator whose statutory objectives and regulatory powers are described on its website at www.thepensionsregulator.gov.uk. A full actuarial funding valuation of the Experian Pension Scheme is carried out every three years, with interim reviews in the intervening years. The latest full valuation was carried out as at 31 March 2019 by independent qualified actuaries Mercer Limited, using the projected unit credit method and there was a small funding surplus. The next full valuation will be carried out as at 31 March 2022. Employees in the USA, Brazil and South Africa have the option to join local defined contribution plans and, as at 31 March 2021, there were 4,455 (2020: 4,368) active members in the USA, 1,100 (2020: 1,256) in Brazil and 485 (2020: 556) in South Africa. There are no other material funded pension arrangements.

(b) Unfunded pension arrangements The Group’s unfunded pension arrangements are designed to ensure that certain directors and senior managers who are affected by the earnings cap, which was introduced by the UK government some years ago to set a ceiling on the amount of benefits that could be paid by defined benefit pension plans, are placed in broadly the same position as those who are not. There are also unfunded arrangements for certain former directors and employees of Experian Finance plc and Experian Limited. Certain of these unfunded arrangements in the UK have been secured by the grant to an independent Financial statements trustee of charges over an independently managed portfolio of marketable securities owned by the Group and reported as financial assets revalued through OCI (note 30(a)).

(c) Post-employment medical benefits The Group operates a plan which provides post-employment medical benefits to certain retired employees and their dependant relatives. This plan relates to former employees in the UK and, under it, the Group has undertaken to meet the cost of post-employment medical benefits for all eligible former employees who retired prior to 1 April 1994 and their dependants.

(d) Related risks Through its defined benefit pension plans and post-employment medical benefits plan, the Group is exposed to a number of risks that are inherent in such plans and arrangements, which can be summarised as follows: asset value volatility, with the associated impact on the assets held in connection with the funding of pension obligations and the related cash flows; changes in bond yields, with any reduction resulting in an increase in the present value of pension obligations, mitigated by an increase in the value of plan assets; inflation, as pension obligations are generally linked to inflation and the prevailing rate of inflation experienced for medical benefits is typically higher than other inflation measures in the UK; and life expectancy, as pension and medical benefits are generally provided for the life of beneficiaries and their dependants. There are no unusual, entity-specific or plan-specific risks, and no significant concentrations of risk. 194 Experian plc Financial statements

Notes to the Group financial statements continued

35. Post-employment benefits – IAS 19 information (a) Post-employment benefit amounts recognised in the Group financial statements (i) Balance sheet assets/(obligations) 2021 2020 US$m US$m Retirement benefit assets/(obligations) – funded defined benefit plans: Fair value of funded plans’ assets 1,274 1,023 Present value of funded plans’ obligations (1,172) (940) Assets in the Group balance sheet for funded defined benefit pensions 102 83

Obligations for unfunded post-employment benefits: Present value of defined benefit pensions – unfunded plans (51) (44) Present value of post-employment medical benefits (4) (4) Liabilities in the Group balance sheet (55) (48) Net post-employment benefit assets 47 35

Pension assets are deemed to be recoverable and there are no adjustments in respect of minimum funding requirements as, under the Experian Pension Scheme rules, future economic benefits are available to the Group in the form of reductions in future contributions or refunds of surplus. (ii) Income statement charge 2021 2020 US$m US$m By nature of expense: Current service cost 4 6 Administration expenses 2 2 Charge within labour costs and operating profit 6 8 Interest income (1) — Total net charge to the Group income statement 5 8

The income statement charge and the remeasurement recognised in the Statement of comprehensive income relate to defined benefit plans. In the year ended 31 March 2019, we recognised a past service cost in respect of Guaranteed Minimum Pension equalisation of US$4m. The amount of any additional liability resulting from the UK High Court ruling on 20 November 2020 on historic transfers is not anticipated to be material to the Group.

(b) Movements in net post-employment benefit assets/(obligations) recognised in the Group balance sheet Present value of obligations Defined benefit Defined benefit Post-employment Fair value of pensions – pensions – medical Movements in plan assets funded unfunded benefits Total net position US$m US$m US$m US$m US$m US$m At 1 April 2020 1,023 (940) (44) (4) (988) 35 Income statement (charge)/credit: Current service cost — (4) — — (4) (4) Administration expenses — (2) — — (2) (2) Interest income/(expense) 23 (21) (1) — (22) 1 Total (charge)/credit to the Group income statement 23 (27) (1) — (28) (5) Remeasurements: Return on plan assets other than interest 142 — — — — 142 Gains from change in demographic assumptions — 2 — — 2 2 Losses from change in financial assumptions — (137) (5) — (142) (142) Remeasurement of post-employment benefit assets and obligations 142 (135) (5) — (140) 2 Differences on exchange 121 (112) (3) (1) (116) 5 Contributions paid by the Group and employees 11 (1) — — (1) 10 Benefits paid (46) 43 2 1 46 — At 31 March 2021 1,274 (1,172) (51) (4) (1,227) 47 Experian plc Annual Report 2021 195

35. Post-employment benefits – IAS 19 information continued (b) Movements in net post-employment benefit assets/(obligations) recognised in the Group balance sheet continued Present value of obligations Defined benefit Defined benefit Post-employment Fair value of pensions – pensions – medical Movements in plan assets funded unfunded benefits Total net position US$m US$m US$m US$m US$m US$m At 1 April 2019 1,122 (1,061) (50) (5) (1,116) 6 Income statement (charge)/credit: Current service cost — (6) — — (6) (6) Administration expenses — (2) — — (2) (2) Interest income/(expense) 25 (23) (2) — (25) — Total (charge)/credit to the Group income statement 25 (31) (2) — (33) (8) Remeasurements: Return on plan assets other than interest (33) — — — — (33) (Losses)/gains from change in demographic assumptions — (13) 1 — (12) (12) Gains from change in financial assumptions — 56 2 — 58 58 Experience gains — 12 1 — 13 13 Remeasurement of post-employment benefit assets and obligations (33) 55 4 — 59 26 Differences on exchange (55) 52 2 — 54 (1) Contributions paid by the Group and employees 13 (1) — — (1) 12 Benefits paid (49) 46 2 1 49 — At 31 March 2020 1,023 (940) (44) (4) (988) 35

(c) Actuarial assumptions and sensitivities The accounting valuations at 31 March 2021 have been based on the most recent actuarial valuations, updated by Willis Towers Watson to take account of the requirements of IAS 19. The assumptions for the real discount rate, pension increases, salary increases and mortality, used to calculate the present value of the defined benefit obligations, all have a significant effect on the accounting valuation. Financial statements Changes to these assumptions in the light of prevailing conditions may have a significant impact on future valuations. Indications of the sensitivity of the amounts reported at 31 March 2021 to changes in the real discount rate, pension increases, life expectancy and medical costs are included below. While the methodology used to determine the discount rate is unchanged from that used at 31 March 2020, the data source used by our external actuary to construct the corporate bond yield curve has been updated due to changes in the classifications of relevant high-quality corporate bonds. In constructing the yield curve, judgment is required on the selection of appropriate bonds to be included and the approach then used to derive the yield curve. The change to the bond universe has reduced retirement benefit obligations at 31 March 2021 by approximately US$28m or 2.4%. In the year ended 31 March 2020 the CPI assumption was derived by assuming a margin of 80 basis points below RPI. Following the announcement by the UK Chancellor of the Exchequer on 25 November 2020, of the outcome of a consultation on the reform to RPI methodology, it is now expected that from 2030 RPI will be aligned with CPIH (the Consumer Price Index including owner occupiers’ housing costs). For the year ended 31 March 2021, a 100 basis point margin between RPI and CPI has been assumed to 2030, with a ten basis point margin assumed thereafter. This results in a single equivalent differential of 50 basis points and an increase in retirement benefit obligations at 31 March 2021 of approximately US$14m or 1.2%. The other methods and types of assumptions used are consistent with those used in the prior year and the absolute sensitivity numbers are stated on a basis consistent with the methodology used in determining the accounting valuation as at 31 March 2021. The methodology evaluates the effect of a change in each assumption on the relevant obligations, while holding all other assumptions constant. 196 Experian plc Financial statements

Notes to the Group financial statements continued

35. Post-employment benefits – IAS 19 information continued (i) Financial actuarial assumptions 2021 2020 % % Discount rate 2.0 2.2 Inflation rate – based on the UK Retail Prices Index (the RPI) 3.3 2.6 Inflation rate – based on the UK Consumer Prices Index (the CPI) 2.8 1.8 Increase in salaries 2.8 2.1 Increase for pensions in payment – element based on the RPI (where cap is 5%) 3.0 2.5 Increase for pensions in payment – element based on the CPI (where cap is 2.5%) 1.9 1.5 Increase for pensions in payment – element based on the CPI (where cap is 3%) 2.2 1.7 Increase for pensions in deferment 2.8 1.8 Inflation in medical costs 6.3 5.6

The principal financial assumption is the real discount rate, which is the excess of the discount rate over the rate of inflation. The discount rate is based on the market yields on high-quality corporate bonds of a currency and term appropriate to the defined benefit obligations. In the case of the Experian Pension Scheme, the obligations are in pounds sterling and have a maturity on average of 17 years. If the real discount rate increased/decreased by 0.1%, the defined benefit obligations at 31 March 2021 would decrease/increase by approximately US$21m and the fair value of plan assets would decrease/increase by approximately US$20m. The annual current service cost would be broadly unchanged. The rates of increase for pensions in payment reflect the separate arrangements applying to different groups of Experian’s pensioners. If the inflation rate underlying the pension increases (both in payment and in deferment) increased/decreased by 0.1%, the defined benefit obligations at 31 March 2021 would increase/decrease by approximately US$12m and the annual current service cost would be broadly unchanged. (ii) Mortality assumptions – average life expectancy on retirement at age 65 in normal health 2021 2020 years years For a male currently aged 65 22.6 22.5 For a female currently aged 65 24.5 24.3 For a male currently aged 50 23.5 23.3 For a female currently aged 50 25.6 25.4

The accounting valuation assumes that mortality will be in line with standard tables adjusted to reflect the expected experience of the Experian Pension Scheme membership, based on analysis carried out for the 2019 actuarial valuation. A specific allowance for anticipated future improvements in life expectancy is also incorporated. While COVID-19 has had an impact on mortality in FY21, the impact on future mortality trends is currently unknown and consequently no adjustment has been made to mortality assumptions in this regard. An increase in assumed life expectancy of 0.1 years would increase the defined benefit obligations at 31 March 2021 by approximately US$6m and the annual current service cost would remain unchanged. (iii) Post-employment medical benefits The accounting valuation in respect of post-employment medical benefits assumes a rate of increase for medical costs. If this rate increased/decreased by 1.0% per annum, the obligations at 31 March 2021 and the finance expense would remain unchanged. (iv) Increase in salaries An increase of 0.1% to the salary increase rate would increase the obligations at 31 March 2021 by approximately US$1m, and the annual current service cost would remain unchanged.

(d) Assets of the Group’s defined benefit plans at fair value 2021 2020 US$m % US$m % UK equities 7 1 6 1 Overseas equities 208 16 175 17 Index-linked gilts 447 35 362 35 Global corporate bonds 404 32 318 31 Secured credit 130 10 105 10 Other unlisted 49 4 37 4 Other 29 2 20 2 1,274 100 1,023 100

The Experian Pension Scheme investment strategy aims to reduce investment risk and funding volatility. With the exception of a target 5% allocation to senior private debt, all other assets are regarded as being readily marketable and regularly traded. The Trustee has adopted funding-based triggers to implement further de-risking of the investment strategy as conditions allow. As a result, during the year the target allocation to equities was reduced from 20% to 15%. These triggers will be kept under review. Over time, the Scheme is expected to increase its allocation to liability matching assets, to provide cash flows to match expected benefit payments. Experian plc Annual Report 2021 197

35. Post-employment benefits – IAS 19 information continued (d) Assets of the Group’s defined benefit plans at fair value continued The Trustee believes that environmental, social and governance (ESG) factors may have a material impact on investment risk and return outcomes. ESG factors, including climate change and stewardship, are increasingly integrated within investment processes both in appointing new investment managers and in monitoring existing investment managers. Monitoring is undertaken and documented on a regular basis, making use of the investment consultant’s ESG rating framework. The Group’s defined benefit plans have no holdings of ordinary shares or borrowings of the Company.

(e) Future contributions There was a small funding deficit at the date of the 2016 full actuarial valuation of the Experian Pension Scheme. To correct the shortfall the employer agreed to pay additional contributions of US$4m per annum over five years from 1 April 2017. The employer has agreed to continue to pay these contributions notwithstanding the small surplus recognised following the 2019 full actuarial valuation. Contributions, including additional contributions, currently expected to be paid to this plan during the year ending 31 March 2022 are US$8m by the Group and US$1m by employees.

36. Deferred and current tax (a) Deferred tax (i) Net deferred tax assets/(liabilities) 2021 2020 US$m US$m At 1 April (95) 15 Differences on exchange 4 2 Tax charge in the Group income statement (note 16(a)) (80) (51) Additions through business combinations (100) (52) Tax recognised within OCI (1) (5) Tax recognised directly in equity on transactions with owners (3) (4) At 31 March (275) (95)

Presented in the Group balance sheet as:

Deferred tax assets 86 107 Financial statements Deferred tax liabilities (361) (202) (275) (95)

Tax recognised in Other comprehensive income is in respect of the remeasurement of post-employment benefit assets and obligations. (ii) Movements in gross deferred tax assets and liabilities Share incentive Accelerated Intangibles Tax losses plans depreciation Other Total Assets US$m US$m US$m US$m US$m US$m At 1 April 2020 246 94 35 10 215 600 Differences on exchange (12) (2) 1 1 2 (10) Tax recognised in the Group income statement (8) 16 3 7 (77) (59) Tax recognised within OCI — — — — (1) (1) Tax recognised directly in equity on transactions with owners — — (3) — — (3) Transfers — — — — 3 3 At 31 March 2021 226 108 36 18 142 530

Share incentive Accelerated Intangibles Tax losses plans depreciation Other Total Assets US$m US$m US$m US$m US$m US$m At 1 April 2019 327 96 40 11 270 744 Differences on exchange (81) (2) 1 — (10) (92) Tax recognised in the Group income statement (1) (1) (2) (1) (41) (46) Tax recognised within OCI — — — — (5) (5) Tax recognised directly in equity on transactions with owners — — (4) — — (4) Additions through business combinations — — — — 3 3 Transfers 1 1 — — (2) — At 31 March 2020 246 94 35 10 215 600 198 Experian plc Financial statements

Notes to the Group financial statements continued

36. Deferred and current tax continued (ii) Movements in gross deferred tax assets and liabilities continued Accelerated Intangibles depreciation Other Total Liabilities US$m US$m US$m US$m At 1 April 2020 650 24 21 695 Differences on exchange (14) (2) 2 (14) Tax recognised in the Group income statement 23 2 (4) 21 Additions through business combinations 100 — — 100 Transfers — 3 — 3 At 31 March 2021 759 27 19 805

Accelerated Intangibles depreciation Other Total Liabilities US$m US$m US$m US$m At 1 April 2019 699 19 11 729 Differences on exchange (92) — (2) (94) Tax recognised in the Group income statement (7) 5 7 5 Additions through business combinations 51 — 4 55 Transfers (1) — 1 — At 31 March 2020 650 24 21 695

These movements do not take into consideration the offsetting of assets and liabilities within the same tax jurisdiction. Items classified as Other assets in the above analyses predominantly relate to future tax benefits deferred in line with local tax laws. (iii) Other information on deferred tax assets and liabilities As set out in note 5, there are a number of critical judgments in assessing the recognition of deferred tax assets. The Group has not recognised deferred tax on losses of US$581m (2020: US$480m) that could be utilised against future taxable income or on US$282m (2020: US$331m) in respect of capital losses that could be utilised against future taxable gains. While these losses are available indefinitely, they have arisen in undertakings in which it is not currently anticipated that future benefit will be available from their use. The capital losses arising on investments are available for use within five years, and future taxable gains against which the capital losses could be utilised are not currently anticipated. There are retained earnings of US$8,980m (2020: US$8,933m) in subsidiary undertakings which could be subject to tax if remitted to Experian plc. No deferred tax liability has been recognised on these earnings because the Group is in a position to control the timing of the reversal of the temporary difference and it is probable that such differences will not reverse in the foreseeable future. Given the mix of countries and tax rates, it is not practicable to determine the impact of such remittance. During the current year the main rate of UK corporation tax was 19% (2020: 19%).

(b) Net current tax assets/(liabilities) 2021 2020 US$m US$m At 1 April (197) (286) Differences on exchange (1) 7 Tax charge in the Group income statement (note 16(a)) (195) (212) Additions through business combinations 10 (1) Tax recognised directly in equity on transactions with owners 5 9 Other tax paid 236 286 At 31 March (142) (197)

Presented in the Group balance sheet as: Current tax assets 34 28 Current tax liabilities (176) (225) (142) (197)

Tax recognised directly in equity on transactions with owners relates to employee share incentive plans. Experian plc Annual Report 2021 199

37. Provisions 2021 2020 North North North America America America security North security legal incident Other America legal incident Other claims costs liabilities Total claims costs liabilities Total US$m US$m US$m US$m US$m US$m US$m US$m At 1 April 30 — 18 48 5 12 24 41 Differences on exchange — — (2) (2) — — (7) (7) Amount charged in the year — 8 5 13 30 — 6 36 Utilised (28) — (4) (32) (5) (12) (5) (22) At 31 March 2 8 17 27 30 — 18 48

Legal claims represent a number of related legal claims arising in North America. In September 2015, Experian North America suffered an unauthorised intrusion to its Decision Analytics computing environment that allowed unauthorised acquisition of certain data belonging to a client, T-Mobile USA, Inc. We notified the individuals who may have been affected and offered free credit monitoring and identity theft resolution services. In addition, government agencies were notified as required by law. We have one remaining claim in respect of the incident and are working with the government bodies involved in this remaining claim, in connection with this we have provided US$8m in the year. It is currently difficult to predict the result, including the timing and scale, but we do not believe the outcome will be material to the Group. In the event of an unfavourable outcome, the Group may benefit from applicable insurance recoveries. Other liabilities principally comprise liabilities of Serasa S.A., in connection with local legal and tax issues, which were primarily recognised on its acquisition in 2007.

38. Called-up share capital and share premium account At 31 March 2021, there were 969.6m shares in issue (2020: 968.7m). During the year ended 31 March 2021, 0.9m (2020: 0.9m) shares were issued and no (2020: 3.6m) shares were cancelled. Further information on share capital is contained in note P to the Company financial statements. The difference between the amounts shown in the Group and Company financial statements in respect of called-up share capital and the share premium account arose due to translation of pound sterling amounts into the US dollar at various exchange rates on various translation dates.

39. Retained earnings and other reserves Financial statements (a) Retained earnings Retained earnings comprise net profits retained in the Group after the payment of equity dividends. There are no significant statutory, contractual or exchange control restrictions on distributions by Group undertakings.

(b) Other reserves (i) Movements in reserves Merger Hedging Translation Own shares Total other reserve reserve reserve reserve reserves US$m US$m US$m US$m US$m At 1 April 2020 (15,682) 11 (1,367) (1,183) (18,221) Shares delivered as consideration for acquisition — — — 90 90 Other vesting of awards and exercises of share options — — — 87 87 Change in the fair value of hedging instruments recognised in OCI — 35 — — 35 Amounts reclassified from OCI to the Group income statement — (33) — — (33) Currency translation gains — — 64 — 64 At 31 March 2021 (15,682) 13 (1,303) (1,006) (17,978)

Merger Hedging Translation Own shares Total other reserve reserve reserve reserve reserves US$m US$m US$m US$m US$m At 1 April 2019 (15,682) 11 (1,055) (1,167) (17,893) Purchase of shares by employee trusts — — — (92) (92) Other vesting of awards and exercises of share options — — — 76 76 Currency translation losses — — (312) — (312) At 31 March 2020 (15,682) 11 (1,367) (1,183) (18,221) 200 Experian plc Financial statements

Notes to the Group financial statements continued

39. Retained earnings and other reserves continued (ii) Nature of reserves The merger reserve arose on the demerger from GUS plc in 2006 and is the difference between the share capital and share premium of GUS plc and the nominal value of the share capital of the Company before a share offer at that date. Movements on the hedging reserve and the position at the balance sheet date reflect hedging transactions, originating from the management of foreign exchange risk, which are not charged or credited to the Group income statement, net of related tax. Movements on the translation reserve and the position at the balance sheet date reflect foreign currency translations since 1 April 2004 which are not charged or credited to the Group income statement, net of related tax. The movement in the year ended 31 March 2021 comprises currency translation gains of US$64m (2020: losses of US$312m) recognised directly in Other comprehensive income. The balance on the own shares reserve is the cost of ordinary shares in the Company and further details are given in note 39(b)(iii). The difference between the amounts shown in the Group and Company financial statements in respect of this reserve arose due to translation of pound sterling amounts into US dollars at different exchange rates on different translation dates. (iii) Movements in own shares held and own shares reserve Number of own shares held Cost of own shares held Treasury Trusts Total Treasury Trusts Total million million million US$m US$m US$m At 1 April 2020 60 8 68 973 210 1,183 Shares delivered as consideration for acquisition (7) — (7) (90) — (90) Other vesting of awards and exercises of share options (1) (4) (5) (12) (75) (87) At 31 March 2021 52 4 56 871 135 1,006

Number of own shares held Cost of own shares held Treasury Trusts Total Treasury Trusts Total million million million US$m US$m US$m At 1 April 2019 61 9 70 985 182 1,167 Purchase of shares by employee trusts — 3 3 — 92 92 Other vesting of awards and exercises of share options (1) (4) (5) (12) (64) (76) At 31 March 2020 60 8 68 973 210 1,183

40. Notes to the Group cash flow statement (a) Cash generated from operations 2021 2020 Notes US$m US$m Profit before tax 1,077 942 Share of post-tax profit of associates (21) (14) Net finance costs 127 257 Operating profit 1,183 1,185 Loss/(profit) on disposal of fixed assets 3 (1) Profit on disposal of investment in associate 14(b), 23 (120) — Impairment of goodwill 20(a), 20(d) 53 — Impairment of other intangible assets 21 33 — Impairment of property, plant and equipment 22 4 — Amortisation and depreciation1 12 591 537 Charge in respect of share incentive plans 33(a) 106 83 Increase in working capital 40(b) (13) (112) Acquisition expenses – difference between income statement charge and amount paid (9) 6 Fair value gain on revaluation of step acquisition — (17) Adjustment to the fair value of contingent consideration 1 (4) Movement in Exceptional and other non-benchmark items included in working capital (10) 17 Cash generated from operations 1,822 1,694

1 Amortisation and depreciation includes amortisation of acquisition intangibles of US$138m (2020: US$124m) which is excluded from Benchmark PBT. Experian plc Annual Report 2021 201

40. Notes to the Group cash flow statement continued (b) Increase in working capital 2021 2020 US$m US$m Trade and other receivables (31) (145) Trade and other payables 18 33 Increase in working capital (13) (112)

(c) Purchase of other intangible assets 2021 2020 US$m US$m Databases 147 175 Internally generated software 197 189 Internal use software 30 39 Purchase of other intangible assets 374 403

(d) Cash flows on acquisitions (non-GAAP measure) 2021 2020 US$m US$m Purchase of subsidiaries (note 41(a)) 568 601 Less: net cash acquired with subsidiaries (47) (26) Settlement of deferred and contingent consideration 5 25 As reported in the Group cash flow statement 526 600 Acquisition expenses paid 47 33 Transactions in respect of non-controlling interests 10 67 Cash outflow for acquisitions (non-GAAP measure) 583 700

(e) Cash (inflow)/outflow in respect of net share purchases (non-GAAP measure) 2021 2020 US$m US$m Issue of ordinary shares (19) (15) Financial statements Purchase of shares by employee trusts — 92 Purchase and cancellation of own shares — 111 Cash (inflow)/outflow in respect of net share purchases (non-GAAP measure) (19) 188

As reported in the Group cash flow statement: Cash inflow in respect of shares issued (19) (15) Cash outflow in respect of share purchases — 203 Cash (inflow)/outflow in respect of net share purchases (non-GAAP measure) (19) 188

(f) Analysis of cash and cash equivalents 2021 2020 US$m US$m Cash and cash equivalents in the Group balance sheet 180 277 Bank overdrafts (10) (5) Cash and cash equivalents in the Group cash flow statement 170 272

(g) Reconciliation of Cash generated from operations to Benchmark operating cash flow (non-GAAP measure) 2021 2020 Notes US$m US$m Cash generated from operations 40(a) 1,822 1,694 Purchase of other intangible assets 40(c) (374) (403) Purchase of property, plant and equipment (48) (84) Sale of property, plant and equipment 1 5 Payment of lease liabilities (56) (55) Acquisition expenses paid 47 33 Dividends received from associates 17 6 Cash flows in respect of Exceptional and other non-benchmark items 67 18 Benchmark operating cash flow (non-GAAP measure) 1,476 1,214

Benchmark free cash flow for the year ended 31 March 2021, as set out in the Financial review within the Strategic report, was US$1,124m (2020: US$774m). Cash flow conversion for the year ended 31 March 2021 was 106% (2020: 88%). 202 Experian plc Financial statements

Notes to the Group financial statements continued

41. Acquisitions (a) Acquisitions in the year The Group made seven acquisitions during the year ended 31 March 2021, including the acquisition of a 60% stake in the Risk Management division of Arvato Financial Solutions (AFS) which completed on 30 June 2020. This investment enables us to expand our range of risk, anti-fraud and identity management services across Germany, Austria and Switzerland. The consideration was satisfied by the delivery of 7.2m Experian plc treasury shares at market value. There are put and call options associated with the shares held by the remaining shareholders of the Risk Management division of Arvato Financial Solutions, and these first become exercisable in January 2026. Accordingly, a provisional amount in respect of the present value of the put options of US$201m has been recognised as a non-current financial liability. On 19 November 2020 we acquired the whole of the issued share capital of Tapad, Inc. (Tapad) a leader in resolution of digital online identities, and on 23 March 2021, we acquired the whole of the issued share capital of BrScan Processamento de Dados e Tecnologia Ltda, (BrScan), a market leader in Fraud and Identity solutions in Brazil. In total provisional goodwill of US$657m was recognised based on the fair value of the net assets acquired of US$416m. Arvato Risk Management Tapad BrScan Other Total US$m US$m US$m US$m US$m Intangible assets: Customer and other relationships 149 156 31 50 386 Software development 14 16 12 15 57 Marketing-related acquisition intangibles 5 3 1 2 11 Other non-acquisition intangibles 11 7 — 9 27 Intangible assets 179 182 44 76 481 Property, plant and equipment 3 1 1 — 5 Trade and other receivables 15 16 4 16 51 Current tax assets 10 — — — 10 Cash and cash equivalents (note 40(d)) 1 18 — 28 47 Trade and other payables (22) (24) (5) (12) (63) Borrowings — — — (15) (15) Deferred tax liabilities (55) (13) (15) (17) (100) Total identifiable net assets 131 180 29 76 416 Goodwill 323 110 103 121 657 Total 454 290 132 197 1,073

Satisfied by: Cash and cash equivalents (note 40(d)) — 290 106 172 568 Experian plc shares 253 — — — 253 Put options 201 — — 7 208 Recognition of non-controlling interest — — — 4 4 Deferred consideration — — — 7 7 Contingent consideration — — 26 7 33 Total 454 290 132 197 1,073

These provisional fair values are determined by using established estimation techniques such as discounted cash flow and option valuation models; the most significant assumption being the retention rates for customers. Provisional fair values contain amounts which will be finalised no later than one year after the date of acquisition. Provisional amounts, predominantly for intangible assets and associated tax balances, have been included at 31 March 2021, as a consequence of the timing and complexity of the acquisitions. Goodwill represents the synergies, assembled workforces and future growth potential of the acquired businesses. None of the goodwill arising in the period of US$657m is currently deductible for tax purposes. However, in the near future we expect to undertake a merger of BrScan into Serasa S.A. which we anticipate will create a separate tax deductible goodwill balance within that company. Goodwill for Arvato Risk Management has increased by US$141m, since we reported the provisional amount at 30 September 2020, as a result of adopting the assumed acquisition method of accounting for this non-controlling interest. Other includes adjustments to prior year acquisition provisional amounts, including a US$9m adjustment to the fair value of customer and other relationships of Auto I.D., Inc. acquired in the year ended 31 March 2020. Experian plc Annual Report 2021 203

41. Acquisitions continued (b) Additional information (i) Current year acquisitions Arvato Risk Management Tapad BrScan Other Total US$m US$m US$m US$m US$m Increase/(decrease) in book value from fair value adjustments: Intangible assets 172 175 44 67 458 Trade and other payables (2) (7) (3) (1) (13) Deferred tax liabilities (50) (13) (15) (17) (95) Increase in book value from fair value adjustments 120 155 26 49 350

Gross contractual amounts receivable in respect of trade and other receivables 10 16 3 11 40 Pro-forma revenue from 1 April 2020 to date of acquisition 36 35 23 35 129 Revenue from date of acquisition to 31 March 2021 78 22 — 17 117 Profit before tax from date of acquisition to 31 March 2021 15 7 — 2 24

At the dates of acquisition, the gross contractual amounts receivable in respect of trade and other receivables of US$40m were expected to be collected in full. If the transactions had occurred on the first day of the financial year, the estimated additional contribution to profit before tax would have been US$28m. (ii) Prior year acquisitions Deferred consideration of US$5m (2020: US$25m) was settled in the year in respect of acquisitions made in earlier years. These cash flows principally relate to the acquisitions of Runpath Group Limited and Clarity Services, Inc. acquired in the year ended 31 March 2018. The Group made eight acquisitions in the year ended 31 March 2020 which included the acquisition of the whole of the issued share capital of Compuscan (CSH Group (Pty) Limited) and Auto I.D., Inc. A cash outflow of US$575m was reported in the Group cash flow statement for that year, after deduction of US$26m in respect of net cash acquired. (iii) Post balance sheet acquisitions On 9 April 2021 the Group completed the acquisition of the entire share capital of Employment Tax Servicing, LLC for US$52m including deferred consideration of US$4m, and on 13 April 2021 we completed the acquisition of the entire share capital of Tax Credit Co., LLC for a cash consideration of US$250m and contingent consideration of up to US$110m. Both acquisitions will bolster our income verification business in North America. Financial statements

42. Capital commitments 2021 2020 US$m US$m Capital expenditure for which contracts have been placed: Other intangible assets 6 2 Property, plant and equipment 10 23 16 25

Capital commitments at 31 March 2021 included US$1m (2020: US$7m) in respect of right-of-use assets. All commitments at 31 March 2021 and 31 March 2020 were expected to be incurred before 31 March 2022 and 31 March 2021 respectively. There were no material leases committed to that had not yet started at 31 March 2021 or 31 March 2020. 204 Experian plc Financial statements

Notes to the Group financial statements continued

43. Contingencies (a) Latin America tax As previously indicated, Serasa S.A. has been advised that the Brazilian tax authorities are challenging the deduction for tax purposes of goodwill amortisation arising from its acquisition by Experian in 2007. The Brazilian courts have ultimately upheld Experian’s position in respect of the tax years from 2007 to 2011 with no further right of appeal. The Brazilian tax authorities have raised similar assessments in respect of the 2012 to 2016 tax years, in which approximately US$135m was claimed, and may raise similar claims in respect of other years. The possibility of this resulting in a liability to the Group is considered to be remote, on the basis of the advice of external legal counsel, success in cases to date and other factors in respect of the claim. We note that a similar challenge has been raised in Colombia in respect of the 2014 and 2016 tax years, in which approximately US$4m was claimed, and similar claims in respect of other years may be raised. We are contesting these on the basis of external legal advice.

(b) UK marketing services regulation We have received a final enforcement notice from the UK Information Commissioner’s Office (ICO) with respect to a 2018 audit of several companies on the use of data for marketing purposes under the EU General Data Protection Regulation (GDPR), which relates to our marketing services activities in the UK. We disagree with the ICO’s decision and have appealed, during which time all requirements will be stayed. At this stage we do not know what the final outcome will be, but it may require significant changes to business processes in our UK marketing services business. This business represents approximately 1% of our global revenues and we do not expect this to result in a materially adverse financial outcome for the Group.

(c) Other litigation and claims There continue to be an increasing number of pending and threatened litigation, regulatory and other claims involving the Group across all its major geographies which are being vigorously defended. The directors do not believe that the outcome of any such claims will have a materially adverse effect on the Group’s financial position. However, as is inherent in legal, regulatory and administrative proceedings, there is a risk of outcomes that may be unfavourable to the Group. In the case of unfavourable outcomes, the Group may benefit from applicable insurance recoveries.

44. Related party transactions (a) Related undertakings A full list of the Company’s related undertakings, including subsidiary and associate undertakings, is given in note S to the Company financial statements. There are no significant non-controlling interests.

(b) Transactions with associates Following the divestment of CCM in the year ended 31 March 2018 the Group owns 23.1% of the issued share capital of Vector CM Holdings (Cayman), L.P. (Vector). The Group recorded the following transactions and balances with Vector and its subsidiaries: Transaction amount Balance owed to Experian Year ended 31 March At 31 March 2021 2020 2021 2020 US$m US$m US$m US$m Promissory note and accrued interest 8 7 102 94 Net amounts collected/(settled) and receivable — — 1 2

The promissory note is due and payable to Experian on 31 May 2024 with interest also payable on this date. During the year ended 31 March 2021, we ceased processing transactions on behalf of Vector and no amounts were received or paid. In the year ended 31 March 2020 cash of US$2m was received and US$2m was paid on behalf of Vector. We did not receive any margin on individual transactions. Transactions with associates are made on normal market terms and in the year ended 31 March 2021 comprised the provision and receipt of services to other associates of US$3m (2020: US$1m) and US$12m (2020: US$9m) respectively. At 31 March 2021, amounts owed by associates, other than Vector, were US$nil (2020: US$nil) and amounts due to associates, other than Vector were US$nil (2020: US$1m). Experian plc Annual Report 2021 205

44. Related party transactions continued (c) Transactions with other related undertakings The Group transacts with a number of related undertakings in connection with the operation of its share incentive plans, pension arrangements in the UK, the USA, Brazil, South Africa and Germany, and the provision of medical cover in the UK. These undertakings are listed in note S(v) to the Company financial statements. Transactional relationships can be summarised as follows: The assets, liabilities and expenses of the Experian UK Approved All-Employee Share Plan and The Experian plc Employee Share Trust are included in these financial statements. During the year ended 31 March 2021, US$57m (2020: US$57m) was paid by the Group to related undertakings, in connection with the provision of post-employment pensions benefits in the UK, the USA, Brazil and South Africa and US$3m (2020: US$3m) was paid by the Group to Experian Medical Plan Limited, in connection with the provision of healthcare benefits. There were no other material transactions or balances with these related undertakings during the current or prior year.

(d) Remuneration of key management personnel 2021 2020 US$m US$m Salaries and short-term employee benefits 10 10 Share incentive plans 11 11 Pension payments — 1 21 22

Key management personnel comprises the Company’s executive and non-executive directors and further details of their remuneration are given in the audited parts of the Report on directors’ remuneration. There were no other material transactions with the Group in which the key management personnel had a personal interest, in either the current or prior year.

45. Events occurring after the end of the reporting period Details of the second interim dividend announced since the end of the reporting period are given in note 19. We completed the acquisitions of Employment Tax Servicing, LLC and Tax Credit Co., LLC on 9 April 2021 and 13 April 2021 respectively. Further details are provided in note 41(b)(iii). Financial statements 206 Experian plc Financial statements

Company profit and loss account for the year ended 31 March 2021

2021 2020 Notes US$m US$m Other operating income F 70.2 79.2 Staff costs G (3.9) (3.8) Depreciation M (0.3) (0.2) Other operating expenses F (65.1) (91.3) Operating profit/(loss) 0.9 (16.1) Interest receivable and similar income H 81.5 82.9 Interest payable and similar expenses I (0.3) (0.2) Dividend income from subsidiary undertakings L 100.0 197.1 Profit before tax 182.1 263.7 Tax on profit J (20.8) (16.5) Profit after tax and for the financial year 161.3 247.2

Company statement of comprehensive income for the year ended 31 March 2021

The Company has no recognised items of income and expenditure other than those included in the profit and loss account. Total comprehensive income for the financial year is therefore equal to the profit for the financial year.

Company balance sheet at 31 March 2021

2021 2020 Notes US$m US$m Fixed assets Investments – shares in Group undertakings L 17,919.5 17,413.2 Right-of-use assets M 2.7 3.0 Deferred tax assets J 15.6 36.4 17,937.8 17,452.6 Current assets Debtors – amounts falling due within one year N 1,761.2 1,728.7 Cash at bank and in hand 0.4 0.3

Current liabilities Creditors – amounts falling due within one year O (1.1) (1.4) Net current assets 1,760.5 1,727.6 Total assets less current liabilities 19,698.3 19,180.2

Creditors – amounts falling due after more than one year O (2.9) (2.9) Net assets 19,695.4 19,177.3

Equity Called-up share capital P 73.0 72.9 Share premium account P 1,425.7 1,243.6 Profit and loss account reserve Q 18,196.7 17,860.8 Total shareholders’ funds 19,695.4 19,177.3

These financial statements were approved by the Board on 18 May 2021 and were signed on its behalf by:

Kerry Williams Director Experian plc Annual Report 2021 207

Company statement of changes in equity for the year ended 31 March 2021

Called-up Share share premium Profit and loss account reserve capital account Profit and Own shares Total Total (Note P) (Note P) loss account reserve (Note Q) equity US$m US$m US$m US$m US$m US$m At 1 April 2020 72.9 1,243.6 19,012.4 (1,151.6) 17,860.8 19,177.3 Profit and Total comprehensive income for the financial year — — 161.3 — 161.3 161.3 Transactions with owners: Employee share incentive plans: – value of employee services — — 106.3 — 106.3 106.3 – shares issued on vesting 0.1 19.3 — — — 19.4 – other vesting of awards and exercises of share options — — (87.3) 87.3 — — Shares delivered as consideration for acquisition — 162.8 — 90.0 90.0 252.8 Dividends paid — — (21.7) — (21.7) (21.7) Transactions with owners 0.1 182.1 (2.7) 177.3 174.6 356.8 At 31 March 2021 73.0 1,425.7 19,171.0 (974.3) 18,196.7 19,695.4

Called-up Share share premium Profit and loss account reserve capital account Profit and Own shares Total Total (Note P) (Note P) loss account reserve (Note Q) equity US$m US$m US$m US$m US$m US$m At 1 April 2019 73.1 1,229.1 18,892.8 (1,136.5) 17,756.3 19,058.5 Profit and Total comprehensive income for the financial year — — 247.2 — 247.2 247.2 Transactions with owners: Employee share incentive plans: – value of employee services — — 83.0 — 83.0 83.0 – shares issued on vesting 0.1 14.5 — — — 14.6

– purchase of shares by employee trusts — — — (91.5) (91.5) (91.5) Financial statements – other vesting of awards and exercises of share options — — (76.7) 76.4 (0.3) (0.3) Purchase and cancellation of own shares (0.3) — (111.9) — (111.9) (112.2) Dividends paid — — (22.0) — (22.0) (22.0) Transactions with owners (0.2) 14.5 (127.6) (15.1) (142.7) (128.4) At 31 March 2020 72.9 1,243.6 19,012.4 (1,151.6) 17,860.8 19,177.3 208 Experian plc Financial statements

Notes to the Company financial statements for the year ended 31 March 2021

A. Corporate information The following paragraphs of IAS 1: Corporate information for Experian plc (the Company) is set out in note 1 –– paragraphs 10(d) and 111, exempting the Company from providing a to the Group financial statements, with further information given in the cash flow statement and information; Strategic report and the Corporate governance report. –– paragraph 16, exempting the Company from providing a statement of compliance with all IFRS; B. Basis of preparation The separate financial statements of the Company are presented –– paragraph 38A, exempting the Company from the requirement for a voluntarily and are: minimum of two of each primary statement and the related notes; prepared on the going concern basis under the historical cost –– paragraphs 38B to D, exempting the Company from the requirement convention and in accordance with UK accounting standards; to provide additional comparative information; and presented in US dollars, the Company’s functional currency; and –– paragraphs 134 to 136, exempting the Company from presenting capital management disclosures. designed to include disclosures in line with those required by those parts of the UK Companies Act 2006 applicable to companies reporting IAS 7 ‘Statement of Cash Flows’. under UK accounting standards even though the Company is Paragraphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in incorporated and registered in Jersey. Accounting Estimates and Errors’, exempting the Company from The directors opted to prepare the financial statements for the year ended disclosing information where it has not applied a new IFRS which has 31 March 2021 in accordance with FRS 101 ‘Reduced Disclosure been issued but is not yet effective. Framework’. The Company intends to continue to use this accounting Paragraph 17 of IAS 24 ‘Related Party Disclosures’, exempting the framework until further notice. Company from disclosing details of key management compensation.

Going concern The requirements in IAS 24 to disclose related party transactions with wholly-owned members of the Group. In adopting the going concern basis for preparing these financial statements, the directors have considered the business activities, the The use of critical accounting estimates and management judgment is principal risks and uncertainties and the other matters that could threaten required in applying the accounting policies. Areas involving a higher the long-term financial stability of the Company. degree of judgment or complexity, or where assumptions and estimates are significant to the Company financial statements, are highlighted in The directors believe that the Company is well placed to manage its note E. financing and other business risks satisfactorily, and have a reasonable expectation that the Company will have adequate resources to continue in D. Significant accounting policies operational existence for at least 12 months from the date of signing these financial statements. The directors therefore consider it appropriate The significant accounting policies applied are summarised below. They to adopt the going concern basis of accounting in preparing the Company have been consistently applied to both years presented. The explanations financial statements. of these policies focus on areas where judgment is applied or which are particularly important in the financial statements. Content from C. FRS 101 exemptions accounting standards, amendments and interpretations is excluded where there is simply no policy choice under UK accounting standards. FRS 101 allows certain exemptions from the requirements of IFRS to avoid the duplication of information provided in the Group financial (i) Foreign currency statements and to provide more concise financial reporting in entity financial statements. The following exemptions have therefore been Transactions in foreign currencies are recorded at the exchange rate applied in the preparation of these financial statements: prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are retranslated at the exchange rate Paragraphs 45(b) and 46 to 52 of IFRS 2 ‘Share-based Payment’, prevailing at the balance sheet date. All differences are taken to the profit exempting the Company from providing details of share options and of and loss account in the year in which they arise. how the fair value of services received was determined. IFRS 7 ‘Financial instruments: Disclosures’. (ii) Investments – shares in Group undertakings Paragraphs 91 to 99 of IFRS 13 ‘Fair Value Measurement’, exempting Investments in Group undertakings are stated at cost less any provisions the Company from disclosing valuation techniques and inputs used for for impairment. The fair value of share incentives issued by the Company the measurement of assets and liabilities. to employees of Group undertakings is accounted for as a capital contribution and recognised as an increase in the Company’s investment Paragraph 38 of IAS 1 ‘Presentation of Financial Statements’, in Group undertakings, with a corresponding increase in equity. exempting the Company from disclosing comparative information required by: (iii) Debtors and creditors –– paragraph 79(a)(iv) of IAS 1 – shares outstanding at the beginning Debtors are initially recognised at fair value and subsequently measured and at the end of the period; and at this value. Where the time value of money is material, they are then carried at amortised cost using the effective interest method. Creditors –– paragraph 73(e) of IAS 16 ‘Property, Plant and Equipment’ – are initially recognised at fair value. Where the time value of money is reconciliations between the carrying amount at the beginning and material, they are then carried at amortised cost using the effective end of the period. interest method. Experian plc Annual Report 2021 209

D. Significant accounting policies continued (vii) Tax Current tax is calculated on the basis of the tax laws enacted or (iv) Cash at bank and in hand substantively enacted at the balance sheet date in Ireland, where the Cash at bank includes deposits held at call with banks and other Company is resident. short-term highly liquid investments. Deferred tax is provided in respect of temporary differences that have originated but not reversed at the balance sheet date and is determined (v) Accounting for derivative financial instruments using the tax rates that are expected to apply when the temporary The Company uses forward foreign exchange contracts to manage its differences reverse. Deferred tax assets are recognised only to the extent exposures to fluctuations in foreign exchange rates. The interest that they are expected to be recoverable. differential reflected in forward foreign exchange contracts is taken to interest receivable and similar income or interest payable and similar (viii) Own shares expenses. Forward foreign exchange contracts are recognised at fair The Group has a number of equity-settled, share-based employee value, based on forward foreign exchange market rates at the balance incentive plans. In connection with these, shares in the Company are held sheet date. Gains or losses on forward foreign exchange contracts are by The Experian plc Employee Share Trust and the Experian UK Approved taken to the profit and loss account in the year in which they arise. All-Employee Share Plan. The assets, liabilities and expenses of these separately administered trusts are included in the financial statements as (vi) Leases if they were the Company’s own. The trusts’ assets mainly comprise The Company undertakes an assessment of whether a contract is or Experian shares, which are shown as a deduction from total shareholders’ contains a lease at its inception. The assessment establishes whether the funds at cost. Company obtains substantially all the economic benefits from the use of an asset and whether it has the right to direct its use. Experian shares purchased and held as treasury shares, in connection with the above plans and any share purchase programme, are also shown Low-value lease payments are recognised as an expense, on a as a deduction from total shareholders’ funds at cost. The par value of straight-line basis over the lease term. For other leases the Company shares that are purchased and cancelled, in connection with any share recognises both a right-of-use asset and a lease liability at the purchase programme, is accounted for as a reduction in called-up share commencement date of a lease contract. capital with any cost in excess of that amount being deducted from the The right-of-use asset is initially measured at cost, comprising the initial profit and loss account. The Company is not required to recognise the par amount of the lease liability adjusted for payments made at or before the value of cancelled shares in a capital redemption reserve. commencement date, plus initial direct costs and an estimate of the cost Contractual obligations to purchase own shares are recognised at the net of any obligation to refurbish the asset or site, less lease incentives. present value of expected future payments. Gains and losses in Subsequently, right-of-use assets are measured at cost less accumulated connection with such obligations are recognised in the profit and loss depreciation and impairment losses and are adjusted for any account. Gains and losses which arise on financial instruments created by Financial statements remeasurement of the lease liability. Depreciation is calculated on a advance instructions to trade in own shares are recognised directly in straight-line basis over the shorter of the estimated useful life of the equity. right-of-use asset and the period of the lease. (ix) Profit and loss account format The lease term comprises the non-cancellable period of a lease, plus Income and expenses, which are recognised on an accruals basis, are periods covered by an extension option, if it is reasonably certain to be reported by nature in the profit and loss account, as this reflects the exercised, and periods covered by a termination option if it is reasonably composition of the Company’s income and cost base. certain not to be exercised. The lease liability is initially measured at the present value of lease (x) Dividend income payments that are outstanding at the commencement date, discounted at Dividend income is recognised in the Company profit and loss account on the interest rate implicit in the lease or if that rate cannot be easily the date on which the Company’s right to receive payment is established. determined the Company’s incremental borrowing rate. Lease payments Liquidation dividends are treated as a return of capital to the extent they comprise payments of fixed principal less any lease incentives. are used to recover the carrying value of the investment in the liquidated The lease liability is remeasured when there is a change in future lease entity. Any amount received in excess of the investment value is treated as payments arising from a change in an index or rate, or if the Company income in the Company profit and loss account. changes its assessment of whether it will exercise an extension or termination option. When a lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recognised in the Company profit and loss account if the asset is fully depreciated. 210 Experian plc Financial statements

Notes to the Company financial statements continued

E. Critical accounting estimates, assumptions and judgments (i) Critical accounting estimates and assumptions In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amount of income, costs and charges, assets and liabilities and the disclosure of contingent liabilities. The resulting accounting estimates, which are based on management’s best judgment at the date of the financial statements will, by definition, seldom equal the related actual results. The most significant of these estimates and assumptions for the Company that has a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is in respect of the carrying value of investments in subsidiary undertakings.

(ii) Critical judgments In applying the Company’s accounting policies, management may make judgments that have a significant effect on the amounts recognised in the Company financial statements. These judgments may include the classification of transactions between the Company profit and loss account and the Company balance sheet. The most significant of these judgments for the Company is in respect of contingencies where, in the case of pending and threatened litigation claims, management has formed a judgment as to the likelihood of ultimate liability. No liability has been recognised where the likelihood of any loss arising is possible rather than probable.

F. Other operating income and expenses Other operating income and expenses principally comprise charges to and from other Group undertakings in respect of Group management services and guarantees provided during the year. The reduction in other operating expenses in the year ended 31 March 2021 compared to the prior year is due to the timing of invoicing. Other operating expenses include a fee of US$0.1m (2020: US$0.1m) payable to the Company’s auditor and its associates for the audit of the Company financial statements.

G. Staff costs 2021 2020 US$m US$m Directors’ fees 2.3 2.3 Wages and salaries 1.3 1.3 Social security costs 0.1 0.1 Other pension costs 0.2 0.1 3.9 3.8

Executive directors of the Company are employed by other Group undertakings and details of their remuneration, together with that of the non-executive directors, are given in the audited part of the Report on directors’ remuneration. The Company had three employees in the year ended 31 March 2021 and two employees throughout the prior year.

H. Interest receivable and similar income 2021 2020 US$m US$m Interest receivable on amounts owed by subsidiary undertakings 81.5 81.8 Foreign exchange gains — 1.1 81.5 82.9

I. Interest payable and similar expenses 2021 2020 US$m US$m Interest payable on lease obligation 0.2 0.2 Foreign exchange losses 0.1 — 0.3 0.2 Experian plc Annual Report 2021 211

J. Tax on profit (a) Analysis of tax charge in the profit and loss account 2021 2020 US$m US$m Current tax: Irish corporation tax charge on profit for the financial year — —

Deferred tax: Origination and reversal of timing differences 20.7 16.5 Adjustment in respect of prior years 0.1 — Total deferred tax charge for the financial year 20.8 16.5 Tax charge for the year 20.8 16.5

(b) Factors affecting the tax charge for the financial year The tax charge for the year is at a rate lower than the main rate of Irish corporation tax of 25% (2020: 25%) with the differences explained below. 2021 2020 US$m US$m Profit before tax 182.1 263.7

Profit before tax multiplied by the applicable rate of tax 45.5 65.9 Effects of: Income not taxable (25.8) (50.2) Expenses not deductible 1.0 0.8 Adjustment in respect of prior years 0.1 — Tax charge for the year 20.8 16.5

The Company’s tax charge will continue to be influenced by the nature of its income and expenditure and prevailing Irish and Jersey tax laws.

(c) Deferred tax asset

The deferred tax asset is in respect of tax losses and the movements thereon are as follows: Financial statements 2021 2020 US$m US$m At 1 April 36.4 52.9 Tax charge in the profit and loss account (20.8) (16.5) At 31 March 15.6 36.4

The Company has no unrecognised deferred tax (2020: US$nil).

K. Dividends Total gross dividends of US$426.8m (2020: US$424.2m) were paid to Experian shareholders during the year. The Company paid interim dividends of US$21.7m (2020: US$22.0m) to those shareholders who did not elect to receive dividends under the Income Access Share arrangements. The balance of US$405.1m (2020: US$402.2m) was paid by a subsidiary undertaking, Experian (UK) Finance Limited (EUKFL), under the Income Access Share arrangements. The Company’s profit and loss account reserve is available for distribution by way of dividend. At 31 March 2021, the distributable reserves of EUKFL as determined under UK company law were US$11,972.4m (2020: US$13,551.8m). Since the balance sheet date, the directors have announced a second interim dividend of 32.5 US cents per ordinary share for the year ended 31 March 2021. No part of this dividend is included as a liability in these financial statements. Further details of payment arrangements, including the Income Access Share arrangements, are given in the Shareholder and corporate information section of the Annual Report. 212 Experian plc Financial statements

Notes to the Company financial statements continued

L. Investments – shares in Group undertakings 2021 2020 Cost and net book amount US$m US$m At 1 April 17,413.2 5,301.3 Additions – fair value of share incentives issued to Group employees 106.3 83.0 Additional investment in direct subsidiary undertakings 400.0 13,299.8 Return of capital from direct subsidiary undertakings — (1,270.9) At 31 March 17,919.5 17,413.2

During the year ended 31 March 2021 Experian plc undertook one transaction as a result of group restructuring which included subscription for an additional US$400.0m of shares in an existing subsidiary undertaking. During the year ended 31 March 2020 Experian plc undertook a number of transactions as a result of group restructuring, including: subscription for additional shares in existing subsidiary undertakings for US$13,299.8m; and receipt of dividends of US$1,468.0m. US$1,270.9m was recorded as a return of capital, with the remaining US$197.1m recorded as dividend income in the Company’s profit and loss account. A list of the Company’s subsidiary undertakings is given in note S(i). The Company directly holds interests in the whole of the issued share capital of the following undertakings: Company Country of incorporation Experian Group Services Limited Ireland Experian Holdings Ireland Limited Ireland Experian Ireland Investments Limited Ireland

M. Leases The Company leases its offices. The original lease term is 25 years and includes periodic break options throughout the lease exercisable only by the Company and not the lessor.

(a) Amounts recognised in the Company balance sheet 2021 2020 US$m US$m Right-of-use asset: At 1 April 3.0 3.2 Depreciation charge for the year (0.3) (0.2) At 31 March 2.7 3.0

Lease obligation: Current 0.2 0.2 Non-current 2.9 2.9 At 31 March 3.1 3.1 Experian plc Annual Report 2021 213

M. Leases continued

(b) Maturity of lease obligation – contractual undiscounted cash flows 2021 2020 US$m US$m Less than one year 0.4 0.3 One to two years 0.4 0.3 Two to three years 0.4 0.3 Three to four years 0.4 0.3 Four to five years 0.4 0.3 Over five years 2.2 2.4 Total undiscounted lease obligation at 31 March 4.2 3.9

(c) Amounts recognised in the Company profit and loss account 2021 2020 US$m US$m Depreciation charge for right-of-use asset 0.3 0.2 Interest expense 0.2 0.2 0.5 0.4

(d) Lease cash flow The total lease cash outflow in the year ended 31 March 2021 was US$0.4m (2020: US$0.4m), of which US$0.2m (2020: US$0.2m) related to payments of interest and US$0.2m (2020: US$0.2m) was for repayments of principal.

N. Debtors – amounts falling due within one year 2021 2020 US$m US$m Amounts owed by Group undertakings 1,759.5 1,728.0 Other debtors 1.7 0.7 1,761.2 1,728.7 Financial statements Amounts owed by Group undertakings are primarily unsecured, interest bearing and repayable on demand.

O. Creditors Due within Due after more Due within Due after more one year than one year one year than one year 2021 2021 2020 2020 US$m US$m US$m US$m Lease obligation (note M) 0.2 2.9 0.2 2.9 Accruals 0.9 — 1.2 — 1.1 2.9 1.4 2.9 214 Experian plc Financial statements

Notes to the Company financial statements continued

P. Called-up share capital and share premium account 2021 2020 Allotted and fully paid US$m US$m 969,611,616 (2020: 968,719,632) ordinary shares of 10 US cents 73.0 72.9 20 (2020: 20) deferred shares of 10 US cents — — 73.0 72.9

At 31 March 2021 and 31 March 2020, the authorised share capital of the Company was US$200m, divided into 1,999,999,980 ordinary shares and 20 deferred shares, each of 10 US cents. The ordinary shares carry the rights to (i) dividend, (ii) to attend or vote at general meetings and (iii) to participate in the assets of the Company beyond repayment of the amounts paid up or credited as paid up on them. The deferred shares carry no such rights. During the year ended 31 March 2021, the Company issued 891,984 (2020: 865,828) ordinary shares for a consideration of US$19.4m (2020: US$14.6m) in connection with the Group’s share incentive arrangements, details of which are given in note 33 to the Group financial statements. The difference between the consideration and the par value of the shares issued is recorded in the share premium account. In addition, a premium of US$162.8m was recorded on treasury shares delivered in the year as acquisition consideration (2020: US$nil). There were no share repurchases during the year following the suspension of the Company’s share repurchase programme. In the year ended 31 March 2020, 3,623,753 ordinary shares were cancelled after being purchased by the Company.

Q. Profit and loss account reserve The profit and loss account reserve is stated after deducting the balance on the own shares reserve from that on the profit and loss account. The balance on the profit and loss account comprises net profits retained in the Company, after the payment of equity dividends. The balance on the own shares reserve is the cost of ordinary shares in the Company and further details are given below. Number of shares held Cost of shares held Treasury Trusts Total Treasury Trusts Total million million million US$m US$m US$m At 1 April 2020 60.4 7.4 67.8 971.3 180.3 1,151.6 Shares delivered as consideration for acquisition (7.2) — (7.2) (90.0) — (90.0) Other vesting of awards and exercises of share options (0.9) (3.7) (4.6) (12.2) (75.1) (87.3) At 31 March 2021 52.3 3.7 56.0 869.1 105.2 974.3

Number of shares held Cost of shares held Treasury Trusts Total Treasury Trusts Total million million million US$m US$m US$m At 1 April 2019 61.5 8.6 70.1 984.6 151.9 1,136.5 Purchase of shares by employee trusts — 3.0 3.0 — 91.5 91.5 Other vesting of awards and exercises of share options (1.1) (4.2) (5.3) (13.3) (63.1) (76.4) At 31 March 2020 60.4 7.4 67.8 971.3 180.3 1,151.6

R. Contingencies The Company has guaranteed: borrowings of Group undertakings of US$4,123m (2020: US$4,208m); the liabilities of The Experian plc Employee Share Trust and the Experian UK Approved All-Employee Share Plan; and the retirement benefit obligations of Group undertakings that participate in the Experian Pension Scheme and of a Group undertaking that participates in a small UK defined benefit pension plan. An indication of the Company’s contingent liability for the year ended 31 March 2021, in the event that the Group undertakings fail to pay their contributions, is given in note 35(e) to the Group financial statements. The Company has also issued a small number of other guarantees in connection with the performance of business contracts by Group undertakings. Experian plc Annual Report 2021 215

S. Related undertakings at 31 March 2021 (i) Subsidiary undertakings Company Country of incorporation Company Country of incorporation Experian Strategic Solutions SA Argentina Experian Latam Holdings Unlimited England and Wales Compuscan Australia (Pty) Ltd Australia Experian Limited England and Wales Experian Asia Pacific Pty Ltd Australia Experian NA Holdings Unlimited England and Wales Experian Australia Credit Services Pty Ltd Australia Experian NA Unlimited England and Wales Experian Australia Fraud Services Pty Ltd Australia Experian Nominees Limited England and Wales Experian Australia Holdings Pty Ltd Australia Experian SURBS Investments Limited England and Wales Experian Australia Pty Ltd Australia Experian Technology Limited England and Wales Look Who’s Charging Pty Ltd Australia Experian US Holdings Unlimited England and Wales Riverleen Finance Pty Ltd Australia Experian US Unlimited England and Wales Tallyman Australia Pty Limited Australia G.U.S. Property Management Limited England and Wales Credify Informationsdienstleistungen GmbH Austria1 GUS 1998 Unlimited England and Wales Experian Austria GmbH Austria1 GUS 2000 Finance Unlimited England and Wales Experian Österreich Verwaltungsgesellschaft mbH Austria2 GUS 2000 UK Unlimited England and Wales Experian Botswana (Pty) Ltd Botswana GUS 2000 Unlimited England and Wales Brain Soluções de Tecnologia Digital Ltda Brazil3 GUS 2002 Unlimited England and Wales BrScan Processamento de Dados e Tecnologia Ltda Brazil4 GUS 2004 Limited England and Wales Experian Tecnologia Brasil Ltda Brazil5 GUS 2005 Finance Unlimited England and Wales Serasa S.A. Brazil6 GUS Catalogues Unlimited England and Wales Experian Bulgaria EAD Bulgaria GUS Finance (2004) Limited England and Wales Experian Canada Inc. Canada GUS Finance 2006 Unlimited England and Wales Experian Holdings Chile SpA Chile7 GUS Finance Holdings Unlimited England and Wales Experian Services Chile S.A. Chile8 GUS Financial Services Unlimited England and Wales Beijing Yiboruizhi Technology Co., Ltd China9 GUS Holdings (2004) Limited England and Wales Experian Credit Service (Beijing) Company Limited China10 GUS Holdings Unlimited England and Wales Experian Hong Kong Holdings Limited China11 GUS International England and Wales Experian Hong Kong Limited China11 GUS International Holdings UK Societas England and Wales

Experian Information Technology (Beijing) GUS Ireland Holdings UK Societas England and Wales Financial statements Company Limited China12 GUS NA Unlimited England and Wales Byington Colombia S.A.S. Colombia GUS Netherlands Unlimited England and Wales Experian Colombia S.A. Colombia GUS Overseas Holdings UK Societas England and Wales Experian Services Costa Rica, S.A. Costa Rica GUS Overseas Investments UK Societas England and Wales Experian A/S Denmark GUS Overseas Retailing Unlimited England and Wales Accolade Unlimited England and Wales GUS Overseas Unlimited England and Wales Castlight Limited England and Wales GUS Property Investments Limited England and Wales CCN UK 2005 Limited England and Wales GUS Unlimited England and Wales CCN UK Unlimited England and Wales GUS US Holdings UK Societas England and Wales Chatsworth Investments Limited England and Wales GUS US Holdings Unlimited England and Wales CSID International Limited* England and Wales GUS US Unlimited England and Wales EHI 2005 Limited England and Wales GUS Ventures Unlimited England and Wales EHI UK Unlimited England and Wales Hugh Wyllie, Limited England and Wales EIS 2005 Limited England and Wales International Communication & Data Limited England and Wales EIS UK Unlimited England and Wales Motorfile Limited England and Wales Experian (UK) Finance Limited England and Wales QAS Limited* England and Wales Experian (UK) Holdings 2006 Limited England and Wales Riverleen Finance Unlimited* England and Wales Experian 2001 Unlimited England and Wales Runpath Group Limited England and Wales Experian 2006 Unlimited England and Wales Runpath Pilot Limited England and Wales Experian CIS Limited England and Wales Runpath Regulated Services Limited England and Wales Experian Colombia Investments Limited England and Wales Serasa Finance Limited England and Wales Experian Europe Unlimited England and Wales Tallyman Limited England and Wales Experian Finance 2012 Limited England and Wales Tapad UK Limited England and Wales Experian Finance plc England and Wales Techlightenment Ltd* England and Wales Experian Group Limited England and Wales The Royal Exchange Company (Leeds) Unlimited England and Wales Experian Holdings (UK) Unlimited England and Wales The Witney Mattress, Divan & Quilt Co. Unlimited England and Wales Experian Holdings Limited England and Wales Compuscan (Pty) Ltd eSwatini/Swaziland Experian International Unlimited England and Wales Experian France S.A.S. France Experian Investment Holdings Limited England and Wales Experian Holding EURL France 216 Experian plc Financial statements

Notes to the Company financial statements continued

S. Related undertakings at 31 March 2021 continued (i) Subsidiary undertakings continued Company Country of incorporation Company Country of incorporation Experian Holding France SAS France CSH Group (Pty) Ltd South Africa23 Experian PH Sarl France Encentivize (Pty) Ltd* South Africa24 3 C Deutschland GmbH Germany13 Encentivize Rewards (Pty) Ltd* South Africa24 CONET Corporate Communication Network GmbH Germany14 Experian South Africa (Pty) Limited South Africa24 Experian GmbH Germany15 Great Universal Stores (South Africa) (Pty) Ltd South Africa24 Informa HIS GmbH Germany16 PCubed Analytical Intelligence (Pty) Ltd* South Africa24 Informa Solutions GmbH Germany14 Prolinx (Pty) Ltd* South Africa23 Infoscore Consumer Data GmbH Germany14 Scoresharp (Pty) Ltd* South Africa24 17 Tapad Germany GmbH Germany Techtonic Information Technologies (Pty) Ltd* South Africa23 Experian Credit Information Company of India Axesor Business Process Outsourcing S.L.U. Spain25 18 Private Limited India Axesor Conocer Para Decidir, S.A. Spain25 18 Experian Services India (Private Limited) India Experian Bureau de Crédito, S.A. Spain26 19 W2 Software (India) Private Limited* India Experian Colombian Investments, S.L.U. Spain26 PT. Experian Decision Analytics Indonesia Indonesia Experian España, S.L.U. Spain26 Experian Group Services Limited Ireland Experian Holdings Espana, S.L. Spain26 Experian Holdings Ireland Limited Ireland Experian Latam España Inversiones, S.L. Spain27 Experian Ireland Investments Limited Ireland Rexburg Spain, S.L.U. Spain26 Experian Ireland Limited Ireland Experian Switzerland AG Switzerland GUS Finance Ireland Unlimited Company Ireland Experian (Thailand) Co., Ltd Thailand GUS Investments 2003 Unlimited Company Ireland Experian Micro Analytics B.V. The Netherlands Experian Holding Italia S.r.l. Italy Experian Nederland BV The Netherlands Experian Italia S.p.A. Italy Experian Scorex Russia B.V. The Netherlands Experian Japan Co., Ltd Japan GUS Europe Holdings BV The Netherlands MCI-Experian Co., Ltd Republic of Korea GUS Holdings BV The Netherlands Experian Lesotho (Pty) Ltd Lesotho GUS Treasury Services BV The Netherlands 20 Experian Information Services (Malaysia) Sdn. Bhd. Malaysia Experian Bilgi Hizmetleri Limited Şirketi Turkey 21 Experian (Malaysia) Sdn. Bhd. Malaysia Experian Uganda CRB Limited Uganda 21 Experian Marketing Services (Malaysia) Sdn Bhd Malaysia Ground Up Limited Uganda 22 Ringgit Arajaya Sdn. Bhd. Malaysia Auto I.D., Inc. USA28 ESI Servicios S. de R.L. de C.V. Mexico ClarityBlue Inc USA29 Experian de Mexico S. de R.L. de C.V. Mexico Clarity Services, Inc. USA28 Experian Soluciones de Informacion, S.A. de C.V. Mexico ConsumerInfo.com Inc USA30 Experian Micro Analytics SAM Monaco CSIdentity Corporation USA28 Scorex SAM Monaco CSIdentity Insurance Services, Inc. USA28 Sistema de informacao de credito S.A Mozambique Experian Background Data, Inc. USA28 Compuscan Credit Reference Bureau (Pty) Ltd Namibia Experian Credit Advisors, Inc. USA28 Experian New Zealand Limited New Zealand Experian Data Corp USA28 Experian AS Norway Experian Fraud Prevention Solutions, Inc. USA28 Experian Gjeldsregister AS Norway Experian Health, Inc. USA28 TapAd Norway AS Norway Experian Holdings, Inc. USA28 Sentinel Peru S.A Peru Experian Information Solutions Inc USA30 Compuscan Philippines, Inc The Philippines Experian Marketing Solutions, LLC USA28 Experian Polska spółka z ograniczoną Experian Reserved Response, Inc. USA28 odpowiedzialnością Poland Experian Services Corp. USA28 DP Management Pte Ltd Singapore MyExperian, Inc. USA28 ENROC Pte. Ltd. Singapore MyHealthDirect, Inc. USA29 Experian Credit Bureau Singapore Pte. Ltd. Singapore RewardStock, Inc. USA28 Experian Credit Services Singapore Pte. Ltd. Singapore Riverleen Finance, LLC USA28 Experian Asia-Pacific Holdings Pte. Ltd. Singapore StatSchedules India, LLC USA28 Experian Singapore Pte. Ltd Singapore Strategic Cost Control, Inc. USA31 Compuscan Academy (Pty) Ltd South Africa23 String Automotive Solutions, Inc. USA28 Compuscan Holdings International (Pty) Ltd South Africa23 String Enterprises, Inc. USA28 Compuscan Holdings South Africa (Pty) Ltd* South Africa23 Tapad, Inc. USA28 Compuscan Information Technologies (Pty) Ltd* South Africa23 The 41st Parameter, Inc. USA28 Numeric superscripts refer to registered office addresses given * In voluntary liquidation in note S(ii) Experian plc Annual Report 2021 217

S. Related undertakings at 31 March 2021 continued (ii) Addresses of registered offices of subsidiary undertakings Country of incorporation Address of registered office Country of incorporation Address of registered office Argentina Carlos Pelligrini 887, 4th Floor, Ciudad Autonoma de Ireland Newenham House, Northern Cross, Malahide Road, Buenos Aires, Buenos Aires Dublin 17, D17 AY61 Australia Level 6, 549 St Kilda Road, Melbourne, VIC 3004 Italy Piazza dell’Indipendenza No 11/B, 00185, Rome Austria1 Gumpendorfer Straße 19-21/5. OG, 1060, Wien Japan 1-1 Otemachi 1-chome, Chioyda-ku Tokyo Austria2 Strozzigasse 10/14, 1080 Vienna Republic of Korea 10F Shinhan L Tower, 358 Samil-daero, Jung-gu, Seoul Botswana Plot 64518 Deloitte House, Fairgrounds, Gaborone Lesotho Plot No. 582, Ha Hoohlo Extension, Maseru Brazil3 Avenida Presidente Vargas, 2921 – 6º Andar – sala Malaysia20 17-9 & 79-9, 9th Floor, The Boulevard Mid Valley City, 611, Vila Homero, Indaiatuba/SP, 13338-705 Lingkaran Syed Putra, 59200 Kuala Lumpur Brazil4 St SCS Quadra 02 Bloco c, 109 - Sala 301 401 501 e Malaysia21 10th Floor Menara Hap Seng, No. 1 & 3 Jalan P. 601 Edif, Brasília, Distrito Federal, 70.302-911 Ramlee, 50250 Kuala Lumpur, Wilayah Persekutuan Brazil5 Al. Vicente Pinzon, 51, cj. 1301, Reserva Vila Olímpia, Malaysia22 Ground, 1st, 2nd & 3rd Floors, Block B, Quill 18, São Paulo/SP, 04547-130 Lingkaran Teknokrat, 3 Barat, Cyber 4, 63000 Sepang, Brazil6 Avenida das Nações Unidas, 14401 – Torre C-1 do Cyberjaya, Selangor Complexo Parque da Cidade – conjuntos 191, 192, 201, Mexico Paseo de la Reforma No. 115, Desp. 1503, Col. Lomas 202, 211, 212, 221, 222, 231, 232, 241 e 242, Chácara de Chapultepec, D.F., C.P. 11000 Santo Antônio, São Paulo/SP, CEP 04794-000 Monaco Athos Palace 2, Rue de la Lujerneta, MC 98000 Bulgaria Sofia 1784, “Mladost” district, 115G “Tsarigradsko Mozambique Edifício Millennium Park, Avenida Vladimir Lenine, 174, Shosse” 115G, Business center MEGAPARK, FL. 10-11 13°, Maputo Canada 199 Bay Street, Suite 4000, Toronto, Ontario M5L 1A9 Namibia C/O Aus Secretarial Services, Bougain Villas, 8 Sam Chile7 Av el Golf 40 piso, 20 Santiago Nujoma Drive, Windhoek Chile8 Av. del Valle 515, Huechuraba, Santiago The Netherlands Grote Marktstraat 49, 2511BH’s-Gravenhage China9 Room 604 6F, One Indigo, 20 Jiuxianqiao Road, New Zealand Level 8, DLA Piper Tower, 205 Queen Street, Auckland, Chaoyang District, Beijing, 100015 1010 China10 Room 601-602 6F, One Indigo, 20 Jiuxianqiao Road, Norway Karenslyst Allé 6, 0278 Oslo Chaoyang District, Beijing, 100015 Peru Av. Canaval y Moreyra Nº 480, Piso 19, San Isidro, Lima 11 China Room 2604, 26th Floor, The World Trade Center, 280 The Philippines 24th Floor Philam Life Tower, 8767 Paseo de Roxas, Gloucester Road, Causeway Bay, Hong Kong Makati City China12 Room 607, One Indigo, 20 Jiuxianqiao Road, Chaoyang Poland Plac Marsz. Józefa Piłsudskiego 3, 00-078 Warsaw Financial statements District, Beijing, 100015 Singapore 10 Kallang Avenue, #14-18 Aperia Tower 2, Singapore, Colombia Carrera 7, No. 76 -35 Floor 10, Bogota 339510 Costa Rica Edificio Oller Abogados, Provincia de 5551007, Av. 18, South Africa23 Compuscan House, 3 Neutron Avenue, Techno Park, San José Province, San José Stellenbosch, 7600 Denmark Lyngbyvej 2, DK-2100, Copenhagen South Africa24 Experian House, Ballyoaks Office Park, 35 Ballyclare England and Wales The Sir John Peace Building, Experian Way, NG2 Drive, Bryanston Ext 7, 2191 Business Park, Nottingham, NG80 1ZZ Spain25 Calle Graham Bell, s/n, Edificio Axesor, Parque eSwatini/Swaziland c/o PricewaterhouseCoopers, Rhus Office Park, Kal Empresarial San Isidro, C.P. 18100, Armilla Grant Street, Mbabane Spain26 C/Principe de Vergara 132, 1a Planta, 28002, Madrid France 1 Avenue du Général de Gaulle, 92800 PUTEAUX, Spain27 Principe de Vergara 131 1°, Madrid Immeuble PB5 Switzerland Thurgauerstrasse 101a, CH-8152, Opfikon Germany13 Edisonstraße 19, 74076, Heilbronn Thailand No. 1788 Singha Complex Building, Room No. 1905, 14 Germany Rheinstraße 99, 76532, Baden-Baden 19th Floor, New Petchburi Road, Bangkapi, Huai Germany15 Speditionstraße 21, 40221, Düsseldorf Kwang, Bangkok Germany16 Kreuzberger Ring 68, 65205, Wiesbaden Turkey River Plaza Büyükdere Cad.Bahar Sok.No:13 K:8 Germany17 Walther-von-Cronberg-Platz 13, 60594 Frankfurt a. Levent 34394 İstanbul Main Uganda Plot 23, 3rd Floor, North Wing, Soliz House, Lumumba India18 5th Floor, East Wing, Tower 3, Equinox Business Park, Avenue, Nakasero, Kampala LBS Marg, Kurla (West), Mumbai, 400070 USA28 The Corporation Trust Company, 1209 Orange Street, India19 1st Floor, Plot No. 6, Janakpuri Colony, Gunrock, Wilmington DE 19801 Hyderabad, Telangana 500009 USA29 475 Anton Boulevard, Costa Mesa, CA 92626 Indonesia World Trade Centre 3 Lantai 27, Jl. Jendral Sudirman USA30 CT Corporation System, 818 West 7th Street, Los Kav. 29-31, Kelurahan Karet, Kecamatan Setiabudi, Angeles, CA 90017 Kota Adm. Jakarta Selatan, DKI Jakarta USA31 CSC, 975 Brush Hill Rd, Milton MA 02186

Numeric superscripts refer to subsidiary undertakings given in note S(i) 218 Experian plc Financial statements

Notes to the Company financial statements continued

S. Related undertakings at 31 March 2021 continued (iii) Additional information on subsidiary undertakings Summary The results of the undertakings listed at note S(i) are included in the Group financial statements. Except as indicated below, the Company has direct or indirect interests in the whole of the issued equity shares of these undertakings. Undertakings which are direct subsidiaries of the Company are detailed in note L to these financial statements. Since demerger from GUS plc in 2006, the Company has eliminated dormant and inactive companies through an ongoing internal programme. Holdings comprising less than 100% Interests of less than 100% of the issued equity of subsidiary undertakings are: Brain Soluções de Tecnologia Digital Ltda – 55.0% Credify Informationsdienstleistungen GmbH – 60.0% DP Management Pte Ltd – 51.0% Experian Australia Credit Services Pty Ltd – 84.7% Experian Bureau de Crédito, S.A. – 75.0% Experian Colombia S.A. – 99.9% Experian Credit Information Company of India Private Limited – 66.7% Experian Italia S.p.A. – 95.0% Experian Information Services (Malaysia) Sdn. Bhd. – 74.0% Experian South Africa (Pty) Limited – 87.5% Informa Solutions GmbH – 60.0% MCI-Experian Co., Ltd – 51.0% Serasa S.A. – 99.7% Holdings comprising other than ordinary shares, common stock or common shares The Company’s equity interests comprise direct or indirect holdings of ordinary shares, common stock or common shares only, except as listed below: GUS 2004 Limited, Motorfile Limited and Experian Soluciones de Informacion, S.A. de C.V. – A ordinary and B ordinary shares GUS International and GUS Investments 2003 Unlimited Company – B ordinary shares GUS 2000 Unlimited – X ordinary and Y ordinary shares Experian Holdings, Inc. – class A and B common stock Experian Information Solutions Inc – common no par value shares Experian Services Corp. – common no par value shares Opt-Out Services, LLC – membership interests shares Riverleen Finance, LLC – common stock shares Experian plc Annual Report 2021 219

S. Related undertakings at 31 March 2021 continued (iv) Associate undertakings Company Holding Country of incorporation Vector CM Holdings (Cayman), L.P. 23.1% Cayman Islands London & Country Mortgages Limited 25.0% England and Wales United Credit Bureau 25.0% Russia Who Owns Whom (Pty) Limited 32.9% South Africa Online Data Exchange LLC 25.0% USA Opt-Out Services, LLC 25.0% USA Central Source LLC 33.3% USA New Management Services, LLC 33.3% USA VantageScore Solutions, LLC 33.3% USA

(v) Other undertakings Country of incorporation Undertaking or operation Serasa Experian Pension Plan Brazil Brigstock Finance Limited England and Wales Experian Medical Plan Limited England and Wales Experian Pension Scheme England and Wales Experian Retirement Savings Plan England and Wales Experian Retirement Savings Trustees Limited England and Wales Experian Trustees Limited England and Wales Experian UK Approved All-Employee Share Plan England and Wales The Pension and Life Assurance Plan of Sanderson Systems Limited England and Wales Versorgungsordnung der Barclays Industrie Bank GmbH vom April 1988 (incl. amendments) Germany The Experian Ireland Pension Plan Ireland The Experian plc Employee Share Trust Jersey Compuscan Team Investment Trust South Africa

CSH Education & Welfare Trust South Africa Financial statements Experian Personal Investment Plan USA

These undertakings are not subsidiaries or associates. Brigstock Finance Limited is a finance company. The other undertakings operate in connection with the Group’s share incentive plans, pension arrangements in the UK, the USA, Brazil, South Africa and Germany, and the provision of medical cover in the UK. 220 Experian plc Shareholder and corporate information

Shareholder and corporate information

Analysis of share register at 31 March 2021 By size of shareholding Number of Number of shareholders % shares % Over 1,000,000 144 0.7 802,461,521 82.8 100,001 to 1,000,000 366 1.7 120,910,798 12.5 10,001 to 100,000 753 3.5 25,666,597 2.6 5,001 to 10,000 581 2.7 3,962,292 0.4 2,001 to 5,000 2,039 9.4 6,173,291 0.6 1 to 2,000 17,839 82.0 10,437,117 1.1 Total 21,722 100.0 969,611,616 100.0

By nature of shareholding Number of Number of shareholders % shares % Corporates 3,663 16.9 897,137,030 92.5 Individuals 18,058 83.1 20,196,573 2.1 Treasury shares 1 — 52,278,013 5.4 Total 21,722 100.0 969,611,616 100.0

Company website Income Access Share arrangements A full range of investor information is available at www.experianplc.com. As its ordinary shares are listed on the London Stock Exchange, the Details of the 2021 AGM, to be held in Dublin, Ireland on Wednesday, Company has a large number of UK resident shareholders. In order that 21 July 2021, are given on the website and in the notice of meeting. shareholders may receive Experian dividends from a UK source, should Information on the Company’s share price is available on the website. they wish, the Income Access Share (IAS) arrangements have been put in place. The purpose of the IAS arrangements is to preserve the tax Electronic shareholder communication treatment of dividends paid to Experian shareholders in the UK, in respect of dividends paid by the Company. Shareholders who elect, or are deemed Shareholders may register for Share Portal, an electronic communication to elect, to receive their dividends via the IAS arrangements will receive service provided by Link Market Services (Jersey) Limited, via the their dividends from a UK source (rather than directly from the Company) Company website at www.experianplc.com/shares. The service is free for UK tax purposes. and it facilitates the use of a comprehensive range of shareholder services online. Shareholders who hold 50,000 or fewer Experian plc shares on the first dividend record date after they become shareholders, unless they elect When registering for Share Portal, shareholders can select their preferred otherwise, will be deemed to have elected to receive their dividends under communication method – email or post. Shareholders will receive a the IAS arrangements. written notification of the availability on the Company’s website of shareholder documents, such as the Annual Report, unless they have Shareholders who hold more than 50,000 shares and who wish to receive elected to either (i) receive such notification by email or (ii) receive paper their dividends from a UK source must make an election to receive copies of shareholder documents, where such documents are available in dividends via the IAS arrangements. All elections remain in force that format. indefinitely unless revoked. Unless shareholders have made an election to receive dividends via the Dividend information IAS arrangements, or are deemed to have made such an election, Dividends for the year ended 31 March 2021 dividends will be received from an Irish source and will be taxed accordingly. The final date for submission of elections to receive UK A second interim dividend in respect of the year ended 31 March 2021 of sourced dividends via the IAS arrangements is 25 June 2021. 32.5 US cents per ordinary share will be paid on 23 July 2021, to shareholders on the register of members at the close of business on 25 Dividend Reinvestment Plan (DRIP) June 2021. Unless shareholders elect by 25 June 2021 to receive US dollars, their dividends will be paid in pounds sterling at a rate per share The DRIP enables those shareholders who receive their dividends under calculated on the basis of the exchange rate from US dollars to pounds the Income Access Share arrangements to use their cash dividends to sterling on 2 July 2021. A first interim dividend of 14.5 US cents per buy more shares in the Company. Eligible shareholders, who wish to ordinary share was paid on 5 February 2021. participate in the DRIP in respect of the second interim dividend for the year ended 31 March 2021, to be paid on 23 July 2021, should return a completed and signed DRIP application form, to be received by the registrars no later than 25 June 2021. Shareholders should contact the registrars for further details. Experian plc Annual Report 2021 221

Capital Gains Tax (CGT) base cost for UK shareholders Contact information On 10 October 2006, GUS plc separated its Experian business from its Home Retail Group business by way of demerger. GUS plc shareholders Corporate headquarters were entitled to receive one share in Experian plc and one share in Home Experian plc Retail Group plc for every share they held in GUS plc. Newenham House Northern Cross The base cost of any GUS plc shares held at demerger is apportioned for Malahide Road UK CGT purposes in the ratio 58.235% to Experian plc shares and Dublin 17 41.765% to Home Retail Group plc shares. This is based on the closing D17 AY61 prices of the respective shares on their first day of trading after their Ireland admission to the Official List of the London Stock Exchange on 11 October 2006. T +353 (0) 1 846 9100 F +353 (0) 1 846 9150 For GUS plc shares acquired prior to the demerger of Burberry on 13 December 2005, which are affected by both the Burberry demerger and the subsequent separation of Experian and Home Retail Group, the Investor relations original CGT base cost is apportioned 50.604% to Experian plc shares, E [email protected] 36.293% to Home Retail Group plc shares and 13.103% to Burberry Group plc shares. Registered office Experian plc Shareholder security 22 Grenville Street Shareholders are advised to be wary of any unsolicited advice, offers to St Helier buy shares at a discount or offers of free reports about the Company. Jersey More detailed information on such matters can be found at JE4 8PX www.moneyadviceservice.org.uk. Details of any share dealing facilities Channel Islands that the Company endorses will be included on the Company’s website or Registered number – 93905 in Company mailings. Registrars The Unclaimed Assets Register Experian Shareholder Services Experian owns and participates in The Unclaimed Assets Register, which Link Market Services (Jersey) Limited provides a search facility for shareholdings and other financial assets that PO Box 532 may have been forgotten. For further information, please contact The St Helier Unclaimed Assets Register, The Sir John Peace Building, Experian Way, Jersey NG2 Business Park, Nottingham, NG80 1ZZ, United Kingdom JE4 5UW (T +44 (0) 333 000 0182, E [email protected]) Channel Islands or visit www.uar.co.uk. T 0371 664 9245 American Depositary Receipts (ADR) T (for calls from outside the UK) +44 800 141 2952 Experian has a sponsored Level 1 ADR programme, for which Bank of E [email protected] New York Mellon acts as Depositary. This programme trades on the Calls are charged at the standard geographic rate and will vary by highest tier of the US over-the-counter market, OTCQX, under the symbol provider. Calls from outside the United Kingdom will be charged at the EXPGY. Each ADR represents one Experian plc ordinary share. Further applicable international rate. Lines are open from 8.30am to 5.30pm (UK information can be obtained by contacting: time) Monday to Friday excluding public holidays in England and Wales. Shareholder Correspondence BNY Mellon Depositary Receipts Stock exchange listing information PO Box 505000 Exchange: London Stock Exchange, Premium Main Market Louisville, KY 40233-5000 USA Index: FTSE 100 Shareholder and corporate information T +1 201 680 6825 (from the USA 1-888-BNY-ADRS) Symbol: EXPN E [email protected] W www.mybnymdr.com

Financial calendar Second interim dividend record date 25 June 2021 Trading update, first quarter 15 July 2021 AGM 21 July 2021 Second interim dividend payment date 23 July 2021 Half-yearly financial report 17 November 2021 Trading update, third quarter 14 January 2022 Preliminary announcement of full-year results May 2022 222 Experian plc Shareholder and corporate information

Glossary

The following abbreviations are used in this Annual Report, and are taken to have the following meanings: Abbreviation Meaning AGM Annual General Meeting AI Artificial intelligence API Application Programming Interface B2B Business-to-Business B2B2C Business-to-Business-to-Consumer B2C Business-to-Consumer Benchmark EBIT Benchmark earnings before interest and tax. See note 6 to the Group financial statements Benchmark EBITDA Benchmark earnings before interest, tax, depreciation and amortisation. See note 6 to the Group financial statements Benchmark EPS Benchmark earnings per share. See note 6 to the Group financial statements Benchmark operating cash flow See note 6 to the Group financial statements Benchmark PBT Benchmark profit before tax. See note 6 to the Group financial statements CCM Experian’s email/cross-channel marketing business (a discontinued operation) CCPA California Consumer Privacy Act CDP CDP, formerly known as the Carbon Disclosure Project CEO Chief Executive Officer CFO Chief Financial Officer CGU Cash-generating unit CIP Co-investment Plans Code The UK Corporate Governance Code Company Experian plc COO Chief Operating Officer CPIH The Consumer Price Index including owner occupiers’ housing costs CSID The CSID group of companies comprising CSIdentity Corporation and CSID International Limited DEFRA The UK Government’s Department for Environment, Food and Rural Affairs DEI Diversity, equity and inclusion EITS Experian Information Technology Services EMEA Europe, Middle East and Africa EPS Earnings per share ERG Employee Resource Group ERMC Executive Risk Management Committee ESG Environmental, social and governance FBU Fair, balanced and understandable FCA The UK Financial Conduct Authority FRS Financial Reporting Standard FTE Full-time equivalent FVOCI Fair value through Other comprehensive income FVPL Fair value through profit or loss FX Foreign exchange rate(s) FY19 Year ended 31 March 2019 FY20 Year ended 31 March 2020 FY21 Year ended 31 March 2021 FY22 Year ending 31 March 2022 FY23 Year ending 31 March 2023 GAAP Generally Accepted Accounting Practice GDP Gross Domestic Product GDPR General Data Protection Regulation GIA Global Internal Audit GSO Global Security Office H1 The first half of Experian’s financial year, being the 6 months ending 30 September H2 The second half of Experian’s financial year, being the 6 months ending 31 March HMRC The UK’s ‘Her Majesty’s Revenue & Customs’ IAS International Accounting Standard IAS arrangement Income Access Share arrangement for the payment of dividends from a UK source IASB International Accounting Standards Board IFRIC International Financial Reporting Standards Interpretations Committee Experian plc Annual Report 2021 223

Abbreviation Meaning IFRS or IFRSs International Financial Reporting Standards IRS The US Internal Revenue Service ISO International Organization for Standardization KPI Key performance indicator LGPD Brazil General Data Protection Law MSCIP Marketing Services Consumer Information Portal NED Non-executive director NGO Non-governmental organisation NPS Net Promoter Score OCI Other comprehensive income OpCo Group Operating Committee Policy Directors’ remuneration policy PSP Performance Share Plan Q1 The first quarter of Experian’s financial year, being the 3 months ending 30 June Q2 The second quarter of Experian’s financial year, being the 3 months ending 30 September Q3 The third quarter of Experian’s financial year, being the 3 months ending 31 December Q4 The fourth quarter of Experian’s financial year, being the 3 months ending 31 March RF Radiative Forcing ROCE Return on capital employed SaaS Software-as-a-Service TCFD Task Force on Climate-related Financial Disclosures TSR Total shareholder return UK&I United Kingdom and Ireland WACC The Group’s pre-tax weighted average cost of capital Shareholder and corporate information Notes Sustainability: at a glance

Environment Committed to becoming carbon neutral in own operations by 2030 Science-based Target for 2030 set Yes

Overall CO2e in tonnes Reduced by 58%

Carbon intensity (CO2e per US$1,000 of revenue) Reduced by 60% FY21 carbon emissions offset 20% Electricity from renewable sources 34% CDP Climate Change score (in the Leadership band) A-

Social Improving financial health Number of people with profiles in Experian’s consumer information bureaux 1.3bn Number of free consumer memberships 110m Consumers connected to Experian Boost in the USA 6.7m Value of debt written off by Limpe Nome in FY21 US$6.7bn Total people reached by our Social Innovation products since 2013 61m Target to reach people through Social Innovation products by 2025 100m Total people reached in FY21 through our United for Financial Health education programme 35m Target to reach people through United for Financial Health by 2024 100m Number of credit offers to people in emerging markets using our micro analytics 3.1bn Unbanked people who could benefit through alternative data sources and Experian technology platforms 1.7bn Data Data security, accuracy, privacy and transparency are a top priority Rigorous security controls based on ISO 27001 and we hold Cyber Essentials Certification Employees Glassdoor employee rating 4.1 Gender diversity targets set Yes Signatory of UN Women’s Empowerment Principles Yes Mandatory annual training for all employees: Code of Conduct Security and data Anti-corruption Supply Chain A member of the Slave-Free Alliance Suppliers must comply with our Supply Chain Principles, which are aligned with UN Universal Declaration of Human Rights Supplier Diversity Programme Yes Governance Independent Board members, including independent Chairman 73% Female Board members 36% Board meets Hampton-Alexander Review recommendation on gender diversity Yes Ethnically diverse Board members 2 Board meets Parker Review Committee recommendation on ethnic diversity Yes Independence of Audit, Remuneration and Nomination and Corporate Governance committees 100% Independent Chair and clear division of responsibilities between the Chairman and CEO Yes Independent external evaluation of the Board’s performance, occurs every three years Yes Executive remuneration linked to Group performance Yes Voting rights for ordinary shareholders Yes

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